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Old 27th May 2008 | 09:04
  #89 (permalink)  
groundhand
 
Joined: Feb 2007
Posts: 316
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From: UK
Just for the record, what are management supposed to offer workers when their business is losing money, their customers are hurting and looking for cost savings and the industry, as a whole, is in turmoil?

Annual pay awards are all very nice but are not mandatory. Employee expectation is always that they will receive an annual award higher than inflation; customer expectation is that their handling charges will either not increase or will increase at less than inflation. The airport will increase charges as they see fit; the government will meddle and inevitably add to business costs.

From previous posts it would seem that the operation is not 'fat' in terms of labour; and labour is the biggest cost for a Ground Handling company. You can trim equipment replacement; but only for a limited period and this can backfire with much higher maintenance costs; you can reduce other overheads such as office space etc. but most GH's have been doing this for years and there is no flex left in their operations.

So I ask again, what is a reasonable pay award in this current climate?
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