Trans Maldivian Airways (TMA) employees, including pilots, have decided to strike against the decision to pay salaries and allowances in Rufiyaa due to the government policy on foreign currency exchange.

Sources with information of the matter said the TMA requested Maldives Airports Company Limited (MACL) to accept the land rent and fuel price in Rufiyaa after the government forced the company to give up 20 percent of the dollar income.

But the government rejected the offer. As a result, the company is facing dollar shortages and is forced to pay salaries and allowances in Rufiyaa.

Some TMA employees told Adhadhu that their contract states they will be paid in dollars. They believe it is a huge loss at the current dollar rate.

“If a pilot who earns USD 12,000 is paid in Rufiyaa, he will lose MVR 54,000,” the source said.

TMA, which operates more than 60 seaplanes, has over 1,500 employees.

TMA management first informed employees about the change in a letter on June 22. A second letter was sent on June 30.

Some employees said they will go on strike if their salaries are paid in Rufiyaa for this month. They are planning to suspend flights on July 29 if the management does not comply with their demands.

“This is a huge loss to Maldives tourism and brand,” a person said on condition of anonymity.

TMA pilots held a meeting on Friday to discuss the management's decision to pay their salaries in Rufiyaa.

Adhadhu understands that their salaries will be sent to the bank on Sunday. However, it is not clear whether the management has decided to pay in dollars.

TMA employees were told in June that their salaries would be deposited in Rufiyaa at the bank rate.

The black market dollar rate is now at a record high of MVR 20.20. Some businesses are facing difficulties in getting dollar at this rate for import of goods.