Thai Execs' Pay Deals 'Voluntary'

Thai Airways International Plc's (THAI) president has insisted that salaries and meeting allowances of directors and top executives have been agreed to voluntarily in order to help the airline survive its financial crisis.

Sumet Damrongchaitham said on Monday that "this is part of measures to cut costs so that THAI can restore its competitiveness.

"The spirit of directors and high-level executives will be a signal to everyone in the organisation that it is high time for us to join forces and do whatever we can to help the organisation through this crisis. What can be sacrificed must be sacrificed," the THAI president said.

He spoke after rumours went viral on social media that THAI had forced cuts to executives' salaries and meeting allowances, raising concerns that operational staff might be affected too.

He gave his assurance that the wages of staff at operational levels would not be affected and that "cost reductions will not affect service quality".

The THAI workers' union, meanwhile, argued that a salary cut was the wrong approach to deal with the airline's substantial losses.

Damrong Waikanee, president of the union, said the losses stem mainly from the airline's failure to cope with increasing operating costs.

Despite Mr Sumet's assurances, he said it was a sign that staff will be the "next target", he said.

"The current airline board tends to perceive the union as an enemy and it has never communicated with the staff in a way that encouraged them to join hands in coming up with an effective plan to turn the airline around," he said.

"By comparison, when Piyasvasti Amranand was president of THAI, he was open to opinions from the employees," said Mr Damrong.

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