Travel company Tui announces pay cuts but will maintain a minimum wage

Travel giant Tui is to cut the pay of workers in response to the coronavirus crisis, but has pledged to maintain a minimum wage of almost £17,100.

The company, which has been forced to suspend package holidays and cruises, said it was introducing measures to ensure the future of its business is protected.

From April, staff required to work will receive a 30% reduction in basic pay and contracted hours, while those working less than 50%, or not at all, will receive a 50% reduction.

There will be no redundancies, other than already planned activity in retail and seasonal cabin crew who were recruited ready for the summer season, who are no longer required.

The travel industry is facing unprecedented pressure

Tui said the temporary changes will be difficult, but it pledged to maintain the minimum wage threshold of £17,098 in the UK.

The firm has already announced a company-wide recruitment freeze and a restriction on all non-essential staff travel and training.

Andrew Flintham, managing director of Tui UK and Ireland, said: “The travel industry is facing unprecedented pressure. We will continue to put the customer at the heart of what we do, and when they can holiday with us again we want to be in the best position to deliver the wide range of destinations and experiences we do today.

“It is therefore imperative that we make these difficult cost decisions and also look after our colleagues during such unprecedented uncertainty.

“Our airline and overseas teams continue to work around the clock to get people home from around the globe, even supporting customers who were not due to fly with us.

“Our customer teams have been helping in retail stores, on social media, through our contact centres, and employees from around the business have been welcoming home arrivals at airports.

“We are a fantastic business and we look forward to taking people on holiday again soon.”

Tui UK and Ireland has more than 10,000 employees and serves over six million customers each year.

As part of Tui Group, it is the business behind the Tui, First Choice, Marella Cruises and Crystal Ski Holidays brands, as well as Tui Lakes & Mountains, Tui Tours and Tui River Cruises.