A court case relating to annual increments for monthly paid cabin crew began in the High Court on Wednesday (23 February). The case has been filed against the company by three monthly paid crewmembers (one of who has since left the company).
The crew say that, first, they are contractually entitled to advance on the Master Pay Scale by one point with effect from 1 January each year and, second, claim the effect of the point jump would be a fixed pay increase of around 3.5% annually.
The case dates back to 1999 when the company was facing unprecedented challenges. At the time the company was able to remain viable and competitive only through the enhanced productivity and valuable contribution of its staff.
Despite efforts to reach an agreement on the annual increment issue, it is regrettable that the case will have to be resolved through legal proceedings. This will cause an unnecessary strain on our industrial and employee relations that will not be in the interests of staff, the company or the Flight Attendants Union, which is supporting and funding the court case.
The legal arguments from both sides will be heard in court and I do not intend to go into them here.
The volatile industry environment has made regular annual salary increments untenable. It is a fair and reasonable practice for the company to reward staff with increments based on its performance and ability to pay, the individual contribution made by staff, competitive market levels and the Hong Kong economic environment.
When business is good, all employees benefit and we can continue to reward staff with appropriate salary adjustments, bonus payments and profit share - as we have done in the past.
We take pride in being a responsible employer. We are proud to say we have been rewarding our crew with salary increments well above the average in Hong Kong. At the same time, we are very aware of the need to maintain our competitiveness and viability, and also to meet the company’s investment needs for future growth.
This year and beyond will continue to be challenging for the company. We need to continue to work together as a team to make Cathay Pacific stronger and to achieve our vision of being the world's most admired airline.