Air Jamaica makes agreement with pilots

Airline Industry Information, May 6, 2005

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The pilots of Air Jamaica have agreed to having their pay cut by 5.6%.

The agreement will reportedly settle a dispute that has made the government step in. In addition to the pay cut, the pilots have agreed to cuts in employee benefits, including overtime pay and meal allowances, Air Jamaica said.

Vin Lawrence, the chairman of the airline, did not reveal the size of the expected savings from the agreed cuts, but he said that the pay to the pilots is about a third of the USD100m the airline annually pays in wages. According to The Associated Press, the pilots' union had accepted that pay cuts were necessary but fought to retain benefits without cuts.

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