AOT to pay 7.5-mth bonus

[webfact]

REWARDS
AOT to pay 7.5-mth bonus
The Nation

BANGKOK: -- Airports of Thailand's board of directors has approved a record bonus payment for the 2014-15 operations.

Employees will be entitled to 7.5 months of salary for their service in the year which ended in September, above 6.5 months in the previous year.

Prasong Poontaneat, director-general of the Revenue Department as chairman of the listed state enterprise, attributed the record-high bonus to financial improvement.

In the first nine months of the fiscal year, AOT reaped Bt12.9 billion in net profit. In 2013-14 fiscal year, the full-year net profit was Bt12.2 billion.

"The number of passengers increased to 106 million in the year, and several airports operated above capacity. The staff had to work hard and helped improve the bottom line. The bonus payment is raised to boost their morale. Parts of the profit will also be reserved for future expansion as AOT plans to invest over Bt130 billion to expand the capacity of several airports. Sitting on cash worth about Bt40-Bt50 billion now, we would like to minimise our debt burden," he said.

Source: http://www.nationmultimedia.com/business/AOT-to-pay-7-5-mth-bonus-30271776.html

-- The Nation 2015-10-28

[tomross46]

Give senior management a bonus, for not resolving problems. The FAA audit is another example of management not fixing the problem, just taking the proffit and blaming the little guy.

[Ulic]

Jack up all the fees, show a higher profit because of the increased fees and get a bigger bonus.

No need to increase efficiencies or improve service.

[Evilbaz]

"Use XS profit to reduce debt burden" -= what a novel idea in the Land of Bonuses.

Nice bung for the Directors and Management.

[Ricardo]

So when will work start, on the long-delayed and frequently-announced third-runway & extension-terminal, at Swampy ?

You know Guys, the work you've been saving-up those reserves to fund, which you're now depleting by paying bonuses ?

Now that's just a GREAT way, to minimise your debt, isn't it !

[gandalf12]

If they have that much money spare they need to improve the services with it not give it to the managers

[SoilSpoil]

Normal practices here in Thailand. Most companies pay a yearly bonus equaling several months of salary.

[Don Mega]

Normal practices here in Thailand. Most companies pay a yearly bonus equaling several months of salary.

Yep. and the majority of non management employees are most likely members of a union.

I reckon it went something like AOT offering 5 months bonus then the union came back with demanding 12 months bonus... the 7.5 months is what was settled upon after some to and fro-ing.

Edited October 28, 2015 by Don Mega

[Thai at Heart]

It's a monopoly. Thank god it made a profit....

[pookiki]

Normal practices here in Thailand. Most companies pay a yearly bonus equaling several months of salary.

Yep. and the majority of non management employees are all members of a union. union.

I reckon it went something like AOT offering 5 months bonus then the union came back with demanding 12 months bonus... the 7.5 months is what was settled upon after some to and fro-ing.

Union or no union, the practice of paying bonuses is the norm in Thailand. However, bonuses do very little to improve 'lifetime' wages for workers and bonuses encourage binge spending. However, in this economy AOT will be one of the lucky companies to pay bonuses. Many workers expecting the same bonus at the end of this year may very well find that it will be small or none.

[elgordo38]

Normal practices here in Thailand. Most companies pay a yearly bonus equaling several months of salary.

Yep. and the majority of non management employees are all members of a union. union.

I reckon it went something like AOT offering 5 months bonus then the union came back with demanding 12 months bonus... the 7.5 months is what was settled upon after some to and fro-ing.

Union or no union, the practice of paying bonuses is the norm in Thailand. However, bonuses do very little to improve 'lifetime' wages for workers and bonuses encourage binge spending. However, in this economy AOT will be one of the lucky companies to pay bonuses. Many workers expecting the same bonus at the end of this year may very well find that it will be small or none.

Moved 106 million passengers in this economy. Is this another way of backing of TAT's "numbers?"

[Briggsy]

If the employees had been given 4 months' salary as a bonus, Wednesdays would have been designated, 'Official Industrial Sabotage Day' at AOT airports.

7.5 months' bonus is a meaningless figure unless the salary rate compared to Thai average salary for equally skilled jobs and complete benefits package is known. You would also need to factor in productivity.

e.g. Junior manager at AOT gets 15,000 a month + 7.5 months' bonus = 292,500p.a.

Junior manager at private PLC gets 25,000 a month + 3 months' bonus = 375,000p.a.

See where I am going? Then you need to factor in the high benefits at state enterprises + put a value on the intangible benefits of holding a public sector job, etc., etc.

[TheCruncher]

Is a bonus like 7 months salary also a normal occurrence with companies in the West?

I remember when I was still living in Europe, loooong time ago, some companies had a 13th month bonus but this sound like a 13th to 21st month.

So do European employees have similar bonuses these days?

[Thai at Heart]

Is a bonus like 7 months salary also a normal occurrence with companies in the West?

I remember when I was still living in Europe, loooong time ago, some companies had a 13th month bonus but this sound like a 13th to 21st month.

So do European employees have similar bonuses these days?

It doesn't mean much when the salaries are low. The company has made massive profits so it pays. It's common in Thailand for the car industry for example.

Of course, it also means when the company does badly, you are living on a low basic.

In some ways companies should be forced to increase basic salaries and not be allowed to pay these large multi month bonuses. It suits the companies to do it this way because it reduces their risk massively.

In Europe bonuses are a couple of months possibly, unless you are an investment banker when they can make up 10 times your salary... Which is also nuts.

[Thian]

Then they have plenty money to build some decent smoking launches, just like Changi has. Oh and hire some good english teachers for the personell at the immigration please.