Some employees of Pratt & Whitney and Collins Aerospace will be taking pay cuts and others will be furloughed because of the impact COVID-19 has had on the pandemic.
Raytheon Technologies, which merged with United Technologies, said the company will institute a temporary 10 percent pay cut for all salaried employees across the corporate offices from June 1 through the end of the year, including at the Pratt & Whitney and Collins Aerospace businesses.
Raytheon CE Greg Hayes said in a statement that he volunteered to reduce his pay by 20 percent for the same period.
Affected employees will be given an added 15 days off this year, with dates designated by each respective business and function leader
Pratt & Whitney and Collins Aerospace are implementing furlough programs for hourly employees, and they will vary by country and site, “factoring in customer needs, local regulations and collective bargaining agreements,” according to Raytheon.
The company said hourly employees in those businesses will be part of the furloughs but won’t be impacted by the temporary pay cut.
“I recognize that this puts a burden on all of you, and your families, and increases the feelings of uncertainty we are all experiencing in this unprecedented time. However, these are temporary measures that we must take to responsibly manage the company through the business repercussions of the COVID-19 pandemic,” Hayes said in a statement.
Raytheon said in a statement that the commercial aerospace has been particularly hard hit during the COVID-19 pandemic.
“Airline travel in the U.S. alone is down 96% and we are seeing similar trends globally. Our commercial business partners have begun dramatically scaling back on their operations in order to preserve capital and protect the long-term needs of their businesses, and now we must do the same,” Hayes said in a statement posted online.