A different approach...
LONDON (Dow Jones)--EasyJet PLC's (EZJ.LN) Chief Executive Carolyn McCall Tuesday criticized former management for its poor handling of pilots and conceded a pay rise to appease its strongest group of workers, who will now vote whether to accept the deal and prevent a strike threat.
EasyJet has promised pilots a 4% increase in basic pay, which will be backdated to October 1 and a further 5% increase in flight pay after lengthy negotiations with union British Airline Pilots' Association, or BALPA.
"I am going to be blunt. There has been a continued deterioration in relationships between the company and pilots and pilot representatives over the last few years," McCall said in a letter to pilots. "For whatever reasons, management lost sight of how big a difference having great people makes. It has taken its toll on how pilots feel about working for easyJet, building mistrust and a lack of respect."
Within the letter, she talked about failure in the past to meet commitments the company had made, BALPA said in a statement. The package is being put to a membership ballot that will close June 9.
Industrial action by pilots has a crippling impact on an airline's operations. Their skills aren't as easy to replace as, for example, cabin crew, and wet-leasing planes--leased aircraft that come with a full staff--is expensive.
In addition to pay increases there will also be immediate changes to a number of rostering issues "in advance of a more substantial review which already has financial support of GBP1.2 million earmarked and conversion of a number of temporary staff onto permanent contracts," BALPA said in its statement.
One of the agreements between BALPA and easyJet is for an independent review body with an independent chairperson to look at pilot work patterns.
BALPA's General Secretary Jim McAuslan, said, "This is a brave and game-changing approach. There has been some tough talking but I have nothing but praise for the imaginative move made by Carolyn McCall and easyJet's new leadership. But we all know this will not be delivered without a lot of hard work and proper support."
A spokesman for easyJet said the deal on lifestyle--covering the work-life balance and pay conditions--would offer flexibility for its workforce, providing both a mixture of fixed and rostered pilots.
The airline had previously agreed a deal with pilots that encompassed a 1% increase in pay between April 2010 and October 2010.