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Continental may furlough some local staff
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Posted on Aug 02 2005
Continental Micronesia may furlough a number of employees on Saipan due to the possible loss of service contracts with Japan Airlines and Northwest Airlines.
The airline said the furlough was expected to begin around Oct. 1, 2005. It did not provide the exact number of the personnel that might be laid off.
“It is very difficult to have to furlough our hard-working co-workers,” Mark Erwin, Continental Micronesia’s president and chief executive officer, said in a news statement. “We will work closely with the affected employees to help them through this transition.”
However, Erwin assured the affected employees that the airline would provide them with information regarding opportunities at other Continental Micronesia and Continental locations.
Continental executives reportedly had a meeting with Saipan employees on Monday to discuss the planned furlough. Some of the specific topics tackled at the meeting were the workers’ furlough benefits and early retirement offers for senior employees.
The planned furlough ensued JAL’s announcement to end flights between Japan and Saipan because of high fuel costs and low airfares. JAL’s withdrawal from Saipan will take effect on Oct. 4, 2005, although the airline is expected to continue providing charter flights from Japan.
Continental provides airport ground-handling services to JAL.
Besides the potential termination of the JAL contract, Continental is facing a possible non-renewal of its service contract with Northwest. Two months before the contract’s expiration, Northwest has not yet issued notice of any plan to continue hiring Continental’s services.
At least two companies are currently providing ground-handling services at the Saipan International Airport: Continental and Pacific Oriental Inc.
