CATHAY PATHETIC
20th June 2001, 17:59
To members of the travelling public the issues involved between Cathay Pacific and the pilots are complex and confusing. This is not helped by the media who only receive information designed to bolster each sides position. Hopefully the following will give an insight to the major issues involed.
In the late 80s and early 90s Cathay Pacific pilots were amoung the worlds best paid. The company payed salaries greater than many other airlines to attract pilots to Hong Kong. In 1993 the company began a series of surveys amoung the crews to gauge attitudes towards pay and conditions.
In 1993 the company introduced a two tier pay system which continues until today. Pilots employed before 1993 are on the so called 'A' scale salary package while pilots employed after 1993 receive the 'B' scale package. The difference between the two scales is significant. B scale crew receive approximately 30-40% lower salaries than A scale crew. The company also lowered the standard of benefits such as staff travel for B scale crew.
In 1994 the company introduced a new contract for pilots which involved an increase in productivity. Leave was cut from eight to six weeks and overtime pay was slashed. A scale pilots had their pay frozen at 1993 levels.
In 1995 the company decided to employ crew at greatly reduced salaries to fly Cathay Pacific freighter aircraft. ASL as it is known allowed direct entry Captains and First Officers to undertake employment with Cathay Pacific on salaries lower than that of the B scales introduced in 1993. Employing direct entry crew made the promotion of Cathay Pacific pilots much slower.
In 1999 the company presented A scale pilots with a new contract that contained pay cuts of up to 27%. The pilots were told to accept the pay cuts or lose their jobs. Note that A scale pilots have been on frozen pay levels since 1993.
Recently the company began a campaign of indimidation called an Absence Management Program. Pilots who are unfit to fly 6 or more time in a year receive a disciplinary letter. Crew are also being interviewed to discuss their absence.
The company has also been conducting interviews in Malaysia to employ crew at greatly reduced salaries compared to B scale crew.
In 1998 the company reduced dental benefits for crew claiming the policy was too expensive to operate.
Recently the company, without the consent of the IRS issued a letter to all flight crew that housing allowances used for mortgages would be taxed at the maximum tax level.
Recently a company manager claimed that he would fire 50 pilots on the 1st of July to force the union to call off industrial action.
The company is also preparing to charter aircraft from other airlines to cover the slowdown on the first of July. Cathay pilots are also concerned the company will resort to employing pilots from mainland China at greatly reduced salaries.
The rostering negotiations which are at the heart of the dispute have now continued for more than four years. The issues are crew fatigue and overtime pay. Current rosters are unstable and do not compensate pilots who work overtime. Cathay pilots want an overtime system to discourage the company from employing insufficient numbers of crew.
Salary is also an issue. A scale pilots want to have their final pay cut on the 1st of July stopped because the company is making record profits. B scale crew are requesting a 12% salary increase with an increased contribution to retirement funds. This will still leave B scale crew lagging a long way behind A scale pay.
On the first of July industrial action begins. If the list above which is by no means complete is not enough to convince you of what must be done I dont know what will. I have spent many years with this company and still have decades to go. To make a commitment to Cathay Pacific and Hong Kong I can no longer accept the treatment I have recieved. As the pilots have said, 'If Cathay is prepared to recruit cheap labour or import other airlines from across the border I want to know about it now so I can leave and get on with my career at another airline.' Why would we wish to stay in Hong Kong and receive this sort of treatment when we can return to Australia, North America etc and work in our own countries, have a better standard of living and be better compensated over the length of our careers?
Cathay Pacific must make a gesture of good will towards its aircrew. This was once the world's best airline, not only in pay but in the way staff and management worked together. Now Cathay is a pathetic basket case employing pilots who are worse off than if they had remained in their own countries. I came to this airline because it was the best. It can be again but we need the management to chance thier course of constant degredation of benefits and the intimidation of its pilots. Otherwise Hong Kong is going to lose a great deal of its highly motivated and experienced pilots.
[This message has been edited by CATHAY PATHETIC (edited 21 June 2001).]
In the late 80s and early 90s Cathay Pacific pilots were amoung the worlds best paid. The company payed salaries greater than many other airlines to attract pilots to Hong Kong. In 1993 the company began a series of surveys amoung the crews to gauge attitudes towards pay and conditions.
In 1993 the company introduced a two tier pay system which continues until today. Pilots employed before 1993 are on the so called 'A' scale salary package while pilots employed after 1993 receive the 'B' scale package. The difference between the two scales is significant. B scale crew receive approximately 30-40% lower salaries than A scale crew. The company also lowered the standard of benefits such as staff travel for B scale crew.
In 1994 the company introduced a new contract for pilots which involved an increase in productivity. Leave was cut from eight to six weeks and overtime pay was slashed. A scale pilots had their pay frozen at 1993 levels.
In 1995 the company decided to employ crew at greatly reduced salaries to fly Cathay Pacific freighter aircraft. ASL as it is known allowed direct entry Captains and First Officers to undertake employment with Cathay Pacific on salaries lower than that of the B scales introduced in 1993. Employing direct entry crew made the promotion of Cathay Pacific pilots much slower.
In 1999 the company presented A scale pilots with a new contract that contained pay cuts of up to 27%. The pilots were told to accept the pay cuts or lose their jobs. Note that A scale pilots have been on frozen pay levels since 1993.
Recently the company began a campaign of indimidation called an Absence Management Program. Pilots who are unfit to fly 6 or more time in a year receive a disciplinary letter. Crew are also being interviewed to discuss their absence.
The company has also been conducting interviews in Malaysia to employ crew at greatly reduced salaries compared to B scale crew.
In 1998 the company reduced dental benefits for crew claiming the policy was too expensive to operate.
Recently the company, without the consent of the IRS issued a letter to all flight crew that housing allowances used for mortgages would be taxed at the maximum tax level.
Recently a company manager claimed that he would fire 50 pilots on the 1st of July to force the union to call off industrial action.
The company is also preparing to charter aircraft from other airlines to cover the slowdown on the first of July. Cathay pilots are also concerned the company will resort to employing pilots from mainland China at greatly reduced salaries.
The rostering negotiations which are at the heart of the dispute have now continued for more than four years. The issues are crew fatigue and overtime pay. Current rosters are unstable and do not compensate pilots who work overtime. Cathay pilots want an overtime system to discourage the company from employing insufficient numbers of crew.
Salary is also an issue. A scale pilots want to have their final pay cut on the 1st of July stopped because the company is making record profits. B scale crew are requesting a 12% salary increase with an increased contribution to retirement funds. This will still leave B scale crew lagging a long way behind A scale pay.
On the first of July industrial action begins. If the list above which is by no means complete is not enough to convince you of what must be done I dont know what will. I have spent many years with this company and still have decades to go. To make a commitment to Cathay Pacific and Hong Kong I can no longer accept the treatment I have recieved. As the pilots have said, 'If Cathay is prepared to recruit cheap labour or import other airlines from across the border I want to know about it now so I can leave and get on with my career at another airline.' Why would we wish to stay in Hong Kong and receive this sort of treatment when we can return to Australia, North America etc and work in our own countries, have a better standard of living and be better compensated over the length of our careers?
Cathay Pacific must make a gesture of good will towards its aircrew. This was once the world's best airline, not only in pay but in the way staff and management worked together. Now Cathay is a pathetic basket case employing pilots who are worse off than if they had remained in their own countries. I came to this airline because it was the best. It can be again but we need the management to chance thier course of constant degredation of benefits and the intimidation of its pilots. Otherwise Hong Kong is going to lose a great deal of its highly motivated and experienced pilots.
[This message has been edited by CATHAY PATHETIC (edited 21 June 2001).]