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Case Study 1:

Emirates set to re-establish employee benefits and increase salaries amidst gradual aviation sector recovery

Reversal of cuts introduced during coronavirus pandemic comes as the Dubai-based carrier's CEO sees 'an increasingly clear path to recovery opening up'

Emirates is set to reinstate several employee benefits and increase salaries cut during the height of coronavirus last year, as the UAE continues to recover from the impacts of the pandemic.

The changes, effective October 1, come as the Dubai-based carrier is "seeing an increasingly clear path to recovery opening up", according to Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Airline and Group in a letter to employees. Although he cautioned: "We are still far away from full recovery."

"In the last few weeks and months, and thanks largely to the global vaccination drive and the efforts of our leaders here in the UAE, we have seen an increasingly clear path to recovery opening up," he wrote.

"Our iconic aircrafts are reuniting people in more and more destinations around the world, and other airlines are once again landing at Dubai International Airport. There is a distinct air of positivity and 'getting back to normal'," he continued.

Restored benefits include accommodation allowance for married couples, increasing annual leave entitlement and concessional tickets.

In the letter, he thanked employees for "standing together and with the company during these difficult times. You accepted the difficult working conditions, including cuts to pay and benefits, and you have demonstrated your loyalty".

"We will introduce the option to nominate five friends who can receive concessional tickets in economy class. We will better recognise our internal talent by increasing the salary increment opportunity on promotion for core grades," Al Maktoum wrote.

The aviation industry virtually came to a complete standstill last year at the height of the pandemic as national lockdowns took effect and countries closed their borders in a desperate bid to contain the spread of coronavirus.

The Emirates Group posted a loss of $6bn (AED22.1bn) for the financial year ending 31 March 2021, compared with an AED1.7bn profit for last year.

The group had implemented widespread salary cuts in March last year when it was forced to suspend all its flights due to the closure of international borders as part of measures to curb the spread of coronavirus. But in September 2020, announced it would be bringing them back to 100 percent.

Questions

In line with above case, discuss external and individual equity issues should be considered

trxted answers only no photos

in UAE compensation system?