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Cathay Saves US$ 1 Million a year ... YAY!!!

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  1. #1

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    Cathay Saves US$ 1 Million a year ... YAY!!!

    Good news for all you CX share holders.

    Cathay has presumably found a loop hole which allows it to not pay social security / medicare benefits to its US employees, allowing it to save US$ 1 million a year.

    But no problems for you as travellers, their employees will still deliver services above and beyond what is expected of them.

    Hundreds of US-based cabin crew face loss of welfare benefits as Cathay Pacific halts payments | South China Morning Post


  2. #2

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    Hmmm...

    A "Caring Company" needs to add some fine print added "Only where expressly required by law"

    About our Commitments | Community Relations - Cathay Pacific

    rainylin likes this.

  3. #3

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    I think there's two issues here.

    1) If they are not eligible to take part in the scheme as they say then there is nothing they can really do about it so it's not their fault.

    2) If the above is true then surely they can contribute to a private pension scheme for these staff instead?


  4. #4

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    It's almost as if they are actually trying to destroy their brand image.

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  5. #5

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    Quote Originally Posted by Trebor:
    I think there's two issues here.

    1) If they are not eligible to take part in the scheme as they say then there is nothing they can really do about it so it's not their fault.

    2) If the above is true then surely they can contribute to a private pension scheme for these staff instead?
    They're saying it is not lawful for them to do what they've done "by mistake".

    Also..

    The airline said it had no other option as voluntary contributions were not legally permissible.

  6. #6

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    Quote Originally Posted by shri:
    They're saying it is not lawful for them to do what they've done "by mistake".

    Also..
    Voluntary contributions into the US Social security scheme, there must be some international pension plans that could be used. I guess it gets tricky with americans though!

  7. #7

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    No continuity in the voluntary schemes as those are I assume private? SS and Medicare are govt.

    Yes, American complexities + stunning incompetence from CX accounting / legal in the US.


  8. #8

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    From the comments on the article:

    JKC HKUSA
    JKC HKUSA
    5 hours 23 min ago
    Fact-checking time, folks.
    The reporter who wrote this piece did a horrendous job of researching the SSA system; choosing instead only to over-dramatize the phantom loss of employees' retirement benefits due to Cathay's business-wise decision to stop contributing to SSA.
    And you all fell for it.
    These employees are not being penalized nor suffering from this decision, except for the loss of their golden goose. They can continue to pay into the system themselves, and they are not losing any SSA benefits whatsoever, nor having any previously earned SSA credits taken away from them.
    @Hilariously Serious, you should change your moniker to Hilariously Foolish. Nobody is having retirement benefits taken away from them. But if your only research input came from this journalistic farce of a "story", that would explain your comments and I'll give you another chance. I suggest you tone down your prejudice and ramp up your research.
    @Thesmallerhalf, this decision by Cathay was technically based on the shareholders' behalf, i.e. bottom line profit, so how is it hurting shareholders? I do like your comment questioning the history of these payments. Why suddenly stop? But I would question your own competence as far as it concerns making judgments about others' business mismanagement and malpractice.
    @charlie212, yours was the most accurate comment.
    Bottom line; If I'm the editor, I fire the journalist who wrote this piece of garbage.

    Then, quickly refuted by the author:

    danny.lee@******
    danny.lee@******
    3 hours 41 min ago
    Hi JKC HKUSA, I am the journalist who wrote this story and I take issue with every singl slanderous and incorrect comment and statement you have made. CX and cabin crew both confirm that cabin crew cannot contribute to the government's social security program. That is fact. And well established.

  9. #9

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    Quote Originally Posted by mlclau:
    It's almost as if they are actually trying to destroy their brand image.
    +1. What's next?