Staff on a basic annual salary of US$10,000 or less will not be affected and similar changes are being made across the entire Digicel Group to share the burden equally. The company estimated that 68 per cent of staff would be affected by the pay cut, which it described as “a solution that will help us to get through this together.”
The board said this is a difficult decision but it is necessary to prevent job losses.
The decision came after the company realised a significant impact from prepaid customers as many have lost their jobs or have reduced incomes because of the covid19 restrictions.
The company predicts the more serious effect of covid19 on the economy, predicting it will be worse than the global financial crisis of 2011.
“We could witness our economies shrinking by 15 to 20 per cent, especially those relying on tourism and oil – and it could take up to a few months/years before we see them recover.”
Last Friday, the company said, the local market team hosted a virtual leadership retreat where revenue lines, future projections, and mitigation options were considered as a way to minimise the negative impact of the pandemic.
“Working off the assumption that trading conditions will be very difficult in the first half, with only a modest improvement in the second half of the year, we find ourselves having to make tough decisions in tough circumstances and we must reset our cost structure in line with these new realities.”