Monarch has refused to confirm press reports that staff who escape the axe have been asked to accept pay cuts.
The airline announced last month that it was cutting 1,000 jobs – a third of the workforce – as part of its restructuring plans, which will include ditching all charter flights.
Now, according to press reports, remaining staff have been asked for productivity improvements of 25% to 35% in addition to wage cuts.
The airline is also likely to ask members of its pension scheme to vote on cuts to their retirement pay or risk it being handed over to the Pension Protection Fund, a national body for insolvent schemes, which will cap pensions for those yet to retire at £25,000 a year.
It is understood that the airline’s owner, the Swiss Mantegazza family, has refused to pump more money into the fund.
A new management team head by former IAG executive Andrew Swaffield has secured private equity investors, but they are reluctant to meet the obligations of its pension scheme, which offers payments pegged to final salaries.
A company spokeswoman declared to comment but a spokesman for the pilot’s union BALPA confirmed it was in the middle of negotiations ‘regarding major changes to terms and conditions’.
He said the union expected to ballot members on the changes in the next week or so.
"BALPA representatives are working closely with the company on this restructuring, which is far from the only one we have had to face in recent years," he added.
"Monarch pilots expressed confidence in a recent survey that the Mantegazza families’ long and proud partnership with the airline is robust and will help support the business through these changes."
