MACL announces major cost cutting measures, assures no pay cuts
The MACL MD said that it is important for a company like MACL to cut costs at this time in support of the President's policy to reduce government spending.
By
Ahmed Mizyal
The Maldives Airports Company Limited (MACL) has announced 10 measures to reduce company costs without cutting staff and reducing their benefits.
President Dr. Mohamed Muizzu announced spending cuts on Thursday amid fears of a looming economic crisis.
MACL Managing Director Ibrahim Shareef Mohammed told a news conference on Sunday that it is important for a company like MACL to cut costs at this time following the President's policy.
"MACL is a very diverse company with more than 4,000 employees. Cost reduction by such companies is essential for the success of the President's decision," Shareef said.
According to Shareef, MACL has decided to cut costs in 10 main areas.
These include:
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1-
Cost of fuel
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2-
Consumables
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3-
Water
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4-
Electricity
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5-
Cost of transportation
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6-
Costs that go to internal activities of the company
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7-
Bank charges
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8-
Communication costs
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9-
Inventory costs
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10-
Expenses for ceremonies
With these measures, Shareef said the company's costs will be reduced by about 10% to 20% overall.
‘The terminal project will not be affected’
While the new terminal at Velana International Airport is planned to open for this year’s high season, Shareef said the project would not be affected by the cost-cutting measures.
"It will not affect the opening of the new terminal. It is the money needed for the terminal and all these things have been arranged," Shareef said.
"There will be no obstacle, delay or stoppage in anything done to enhance MACL's service”
‘Employees or allowances will not be cut’
MACL has decided to take measures to cut spending, Shareef said, adding that there will be no layoffs or pay cuts as part of the company's restructuring.
"We will not sack employees. We will not reduce their salaries. Our employees are very important to us. This company will not exist without the employees of this company," Shareef said.
He repeatedly assured that no adverse changes will be made to the allowances of any employee.
Shareef pointed to the new terminal as an example to prove that he would not cut staff.
"By the time the new terminal opens, there are still not enough people here. Restructuring the company is about finding efficiency. It doesn't mean cutting staff at all," he said.
Shareef said the company is expected to increase its revenue in the future with the cost cutting measures in effect.
"This work will not affect service delivery in the slightest. What we are doing is to be efficient and responsible," he said.
“The revenue that we are earning will be more because of this. This way we'll have the opportunity to do more in places that need it [to get a profit].”
