Monarch restructure and Mantegazza exit to complete in three weeks

Monarch restructure and Mantegazza exit to complete in three weeks 

Monarch expects to complete a group restructure and cut 900 jobs by October 24 when new owner Greybull Capital is due to take over from the Mantegazza family.

But the rush to complete the process and axe almost one in three jobs has the support of unions representing Monarch staff.

The Monarch Group declined to comment this week, but the company has signed a share purchase agreement with venture capital firm Greybull and the deal and associated restructuring are due for completion on October 24.

Andrew Swaffield, Monarch Group chairman, identified Greybull as preferred bidder to take over the company last week.

A day later, Monarch issued a joint statement with pilots’ union Balpa and cabin crew and engineering union Unite announcing the level of staff support for pay cuts and changes in working conditions following a ballot.

The changes in pay and terms and conditions are aimed at bringing Monarch staff remuneration into line with that at the low-cost carriers the airline is now looking to emulate.

Monarch reported the pay reductions as “up to 30%”. Unite national officer for civil air transport Oliver Richardson said: “All groups are taking significant pay cuts.

“For crew, the big cuts are [in] variable pay associated with flying and basic pay for senior crew.

“Main crew cannot have the same cuts to their basic as it would be below the legal minimums, but their variable [pay] is a higher proportion of their total income. Engineers face similar cuts to pilots.”

The group is seeking 904 redundancies, including compulsory job losses, but expects about two-thirds of the total to be voluntary.

Travel Weekly understands the consultation process now underway includes Cosmos staff. However, a group spokeswoman insisted: “The mood is quite upbeat. Everyone is focused on October 24.”

Richardson said: “We can’t confirm the redundancy consultation by a specific date as we are in the midst of consultation, but the aim is for it [the process] to be completed in October.

“We are going down this route faced with the real prospect of all jobs being at risk if the company went into administration.

“We saved as many [jobs] as possible and protected pay and terms and conditions as best as we could. As such, it was overwhelmingly voted in favour of by our members.”

Greybull Capital has declined to comment on the deal or the restructuring.

Sourced from Travel Weekly

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