Racing Point F1 has added its name to the list of F1 teams putting its staff on paid leaves. The team announced that drivers Sergio Perez and Lance Stroll would “take a voluntary pay cut”. Lance is the son of the team’s billionaire owner Lawrence Stroll.
The measures by the UK-based team come against the backdrop of a meeting of F1 team bosses and F1 management on Monday. The aim of the meeting was to decide further steps to protect the sport as it suffers a loss of revenue as a result of the canceled races.
Racing Point F1 has decided to utilize the UK government’s scheme and send workers on leaves. The team said that some staff has now been put on a brief leave. And the drivers will likewise accept a deliberate decrease in salary.
No information is available on what number of the 465 member workforce is on furlough, nor the level of the pay cut.
A week ago, McLaren F1 became the first of F1’s seven UK-based groups to exploit the UK government’s furlough scheme.
The government has consented to pay 80% of the pay rates of the employees on leave. The government will provide up to £2,500 every month until they return to work.
On Monday, Williams F1 stuck to this same pattern, with staff put on leave, while drivers George Russell and Nicolas Latifi have consented to a 20% decrease in their pay.
It is expected that the other four UK based F1 teams will soon follow suit. Mercedes, Red Bull, Renault, and Haas will soon take similar cost-slicing measures to provide some relief to their workers.
Additionally, Teams are discussing a reduction of the budget cap already due to come in force in 2021 at $175m. But there is disagreement as to whether it should come down to $150m or a lower figure. As the coronavirus pandemic keeps on growing the future of smaller teams looks more and more uncertain.