Cathay pilots threaten to strike if anyone sacked

Asian Economic News, June 7, 1999

HONG KONG, June 1 Kyodo

Pilots of Cathay Pacific Airways threatened Tuesday to go on strike if any one of them is dismissed for not agreeing to management pay-cut terms.

The pay dispute has disrupted passenger services of the Hong Kong-based airline for the fifth day after a high number of crew members called in sick to express their discontent. "Should the management dismiss any pilot who does not agree to their ultimatum, a strike ballot will be called," the pilots' union Hong Kong Aircrew Officer Association said in a statement issued after an emergency meeting.

Cathay Pacific canceled 37 of its 110 scheduled flights Tuesday. The company chartered 10 flights from five rival airlines to carry its passengers to their destinations.

Pilots and management blame each other for the disruption.

Pilots' spokesman John Findlay said a strike ballot is likely to be supported by members.

"Cathay Pacific has threatened to sack its senior pilots if they do not kowtow to an unreasonable salary cuts' package which has been made to them," he said.

Tony Tyler, a senior official of Cathay Pacific, said the proposal of the airlines' management would not change.

"What we have put forward is not unreasonable and it is necessary if we are to remain in business for a long term," he said.

"We are simply not in a position to change any significant element of our offer as a precondition for discussion to take place," Tyler, director for corporate development, said.

He said the management still wants to resolve the issue with the pilots through negotiations.

Pilots are under pressure as the company set a June 11 deadline for them to accept the pay cuts in return for stock options or risk being fired.

Since last Friday, many pilots said they were unfit to fly due to excessive pressure put on them.

"This is not a dispute about pay," Findlay said. "We have offered to accept pay cuts. The issues here are management greed and contract abuse," he said.

"The pilots do not wish to see the traveling public inconvenienced. The responsibility for this situation rests clearly with the management of Cathay Pacific," he said.

The senior pilots had offered to accept pay cuts averaging 20 % which could save the company 540 million H.K. dollars (69.7 million U.S. dollars) over five years. But they said the management asked for 1.5 billion H.K. dollars in cuts for 10 years.

Quince Chong, a spokeswoman for Cathay Pacific, said the pilots should not inconvenience passengers with their action.

Chong said light disruption has been under control and the number of passengers affected has decreased.

Dragonair, Japan Airlines, Malaysia Airlines, Vietnam Airlines and Singapore Airlines each are providing two flights to help transport Cathay Pacific's passengers.

Over 10,000 passengers have been affected by flight cancellations during the past five days.

Pilots are seeking arbitration to settle the dispute and their representatives will meet a labor commissioner on Wednesday for help.

Findlay said the union was not satisfied when Cathay Pacific management insisted on its preconditions before agreeing to resume negotiations.

Cathay Pacific lost 542 million H.K. dollars in 1998, its first full-year loss in 35 years.

The company said the pilots' pay-cut package is one of its measures to boost the airline's competitiveness to counter the Asian economic downturn.