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Old 17th Jan 2015, 10:42
  #47 (permalink)  
olderairhead
 
Join Date: Nov 1999
Location: Aus
Posts: 723
Copy of an email doing the rounds:

As an associate of both current and former Air Niugini pilots, I am aware that Air Niugini has advertised Pilot position locally within PNG, on SEEK, the AFAP website, and in the Cairns Post. For those contemplating these Pilot positions the following information (as relayed to me) may be of interest.

“The positions offered will be based Port Moresby, Papua New Guinea with option for domicile at a port of the employees own choosing”.
The Air Niugini Pilots Contract 2015, allows 4 weeks Annual Leave together with ten (10) days off at home base.

The Rostering Department has been instructed to allocate RD’s in a group of 7 consecutive days together with 3 separate individual days for those domiciled domicile at a port of own choosing elsewhere other than Port Morseby. However, with an ever-reducing number of pilots it is uncertain as to whether this Rostering pattern can or will be sustainable.

To travel to domicile, a pilot will be ticketed to a port on the ANG network and will need to use his/her RDO’s for travel as travel will not be rostered on duty. The pilot will therefore have 5 full consecutive RDO’s at domicile, which is effectively 65 days at home out of the 365 days of the year (13 blocks x 5 RD’s). Information is that only one FOC Y class return ticket will be issued per block per pilot.

The single RDO’s will in effective only be useable in the base of Port Moresby as there will be no way of effectively traveling anywhere on a single RD.

Accommodation in Port Moresby (the Base) will be provided by ANG. For those “domiciled at port of choosing” a self-contained two-bedroom apartment will provided on a share with another pilot basis (ala boarding school). It is not known whether there will be a charge for this as those details are allegedly contained in the “Housing Policy Manual”. This manual has not been made available to the pilot group (as far as I am aware). It is believed that, out of each pilot’s salary, an amount will be deducted for electricity, and such amount will be the same for all residents (no matter the amount of time you spend there in your apartment).

For those who take full time residence in POM (ie: not domiciled at the port of employees own choosing), you will be provided POM accommodation. This however comes with a price. it is understood that 6.5% of gross will be taken out of the salary as a “Fringe Benefits Tax” plus an amount for rent will be also be deducted. This is believed to be in the vicinity of PGK6-700 per fortnight. Therefore, for a POM basing, not domiciled at a port of the employees own choosing, over half of the salary will be taken in taxes and accommodation cost.

Whilst in POM no meal allowances or any other allowance will be payable, the pilot will be responsible for his/her own day-to-day living costs, passport, telephone and Internet. Also should there be delays in obtaining any required Visa, Work Permits, etc, no matter if the delay is the fault of yourself, ANG, or the relevant PNG Government Department, the contract states that you will be placed on Recreation Leave until the issue is resolved.

“Port Moresby, Papua New Guinea which has facilities for water sports, diving, tennis, golf, restaurants, and family clubs with access to Australian curriculum international primary and secondary schools”.
Yes, it does have those things, but do not think that Port Moresby is some pleasant 1st world country. It most definitely is not. The following articles will give an indication of what living in Port Moresby might entail.

The “Independent” on the 30 August 2013, listed Port Moresby as the 3rd worst city to live in the world.

The 10 worst cities in the world to live in - World - News - The Independent

“With only 350,000 people living in Port Moresby, this city still gets to enter the top 10 dangerous cities in the world. Theft, rape, murders and auto theft happen on a daily basis, and it is recommended not to use public transportation. Beside all these concern reasons, the entire area is submitted to seismic activities, landslides and tsunamis”.

This Internet article says likewise.

Top 10 Most Dangerous Cities In The World | News, Facts & Other Information You Love - UncoverDiscover.com

“Port Moresby, Papua New Guinea
: The lone entry from Oceania is the ultra-diverse Port Moresby of Papua New Guinea. PNG is home to over 820 languages – more than any other country in the world. As such, its capital Port Moresby boasts a diverse crew of opportunists and island cultures. It was recently voted by the Economist as the 137th out of 140 places in the livable cities index, making it a tough place to get by.

Rapes, Murders, and HIV are just a few of the daily tragedies that befall this enclave at the edge of the map. Here, even riding in cars is a dangerous activity. Gangs called Raskols are known to rob vehicles transporting foreigners at gunpoint”.
International schooling is available as stated but this is by no means cheap (comparably) and no schooling subsidy or allowance is paid by ANG.

“Port Moresby is ideally located allowing easy accessibility to all parts of the world via Australia, Singapore, Hong Kong, Manila and Japan”.
That is correct. In addition to PX flights, Qantaslink and Virgin operate to POM. Apparently Philippine Airlines will soon be operating between the Philippines and POM.

Should you wish to take advantage of POM as a stepping off point for all parts of the world, and in doing so, decide to use ANG sub load Staff Travel, your family members may need a Visa to transit POM. The PNG Government no longer allows "Visa on Arrival" for Australian Passport Holders, so for travel that is sub-load, a PNG Entry Visa is required. However the Consulate will only issue a single entry Visa, so should it be used on the flight out (delay, cancellation etc) you will need to obtain another to transit back to Australia on the return trip.

Family members who hold passports other than an Australian passport will normally not have that difficulty.

Realistically, unless you live in POM, it will be much easier to use another airline and another staging point to that rest of the world, and in many (perhaps most) cases it will be cheaper as X POM there is no competition and ANG airfares reflect that point

“A competitive salary package will be provided to attract the right candidate.”
New hires will be paid on a new B scale in PNG Kina. In many cases Captains will have “A” scale First Officers who will earn almost the same as they do. In fact, with the current seniority on the B767 fleet, just about every “A” scale First Officer will earn upwards of $AUD20, 000 more than a new “B” scale Captain. This is in no means a criticism, as all new hires will need the assistance and guidance of an experienced First Officers to get the “show on the road” rather than the assistance and guidance of ANG.

To salary paid, the following pay scales are lifted directly from the 2015 Contract. The 2012 Contract was paid in $AUD, however the 2015 contract will be paid in the PNG Kina. A salary in $AUD has been stated which will then be converted to a PGK value at a nominal exchange rate of .40 cents. The pilot salary will the be tied to the Kina (PGK) where each .01 Australian cent variance in the exchange having a significant impact, if it goes up you win, if it goes down you loose.

The salary scales are as follows:

DHC 8
Capt PGK 271,130 / $AUD 108,452 F/O PGK 115,692 / $AUD 46, 277

Q400
Capt PGK 300,118 / $AUD 20,047 F/O PGK 184, 241 / $AUD 73,696

F100
Capt PGK 353,880 / $AUD 141,552 F/O PGK 245,711 / $AUD 98,285

B737
Capt PGK 402,027 / $AUD 160,811 F/O PGK 312, 370 / $AUD 124,948

B767
Capt PGK 428,062 / $AUD 171,225 F/O PGK 312, 370 / $AUD 124,948

Tax is paid in PNG, and compared to the AUS tax scales is more onerous. There is no tax-free threshold applied to residents. For example:

The DHC 8 Captain salary (using $AUD 108, 452 and an exchange rate of .40c for ease of example) equates to $AUD 5,628 net per month. Earning $AUD 90,000 in Australian will give a monthly net take home salary of $AUD 5,614 plus a further $713 paid in monthly compulsory employer Super contribution.

The B767 Captain salary (using $AUD 171,225 and an exchange rate of .40c) equates to $AUD 8,662 net per month. Earning $AUD 150,00 in Australian will give a monthly net take home salary of $AUD 8,701 plus a further $1,188 paid in monthly compulsory employer Super contribution. So you can see the implications of the higher tax and the lack of compulsory employee superannuation.

Whilst no Superannuation is paid by ANG, the employee can salary sacrifice up to 15% of gross salary, but there are tax implications if certain criteria are not met when it comes time to withdraw.

The 2015 Pilots Contract Conditions will last for the next 6 years, although the pilots individual Contract only be for 3 X 2 years. At the end of each 2 years your contract will be reviewed, and renewal will be based on whether you have reached KPI in flown hours, performance in training and renewals together with your general attitude towards the company. If you reach your KPI targets and considered a company person a 1.7% pay rise will be given each year.

A 1.7% increase in salary does not bode well when compared to the PNG inflation rate. In the second quarter of 2014 the inflation was 5.10 %. POM is indeed an expensive place to live.

Commentary.
Within the last 12 months there have been almost 50 Pilot resignations (around 22% of the Pilot group), and the majority of the remaining Expatriate Pilots, and indeed many of the National Pilots, are actively looking for work elsewhere with several already signaling resignations dates.
For ANG this should be considered unprecedented, as over the last several years ANG has had an extremely stable workforce with resignations at a minimum. These more recent resignations began when the general attitude towards the Pilot Group by Management became more and more disdainful, which has now accelerated with the publication of the new 2015 Contract.

Within the last 6 months, 8 Pilots were made redundant as several flying contacts went elsewhere. In that short time ANG has found a need to rehire so as to avoid parking aircraft.

ANG has a very active and large Cadet Pilot system and will eventually reach a self-sustaining Pilot level where the reliance on expatriate pilot will be exceedingly reduced. Management has stated that the aim is to reduce the Expat Pilot Workforce to 20% of the total pilot group within 5 years. That would mean a reduction of a further 60 or so expats over that 5 year time frame.

As such ANG is becoming a short term Contract job.

ANG considers that the Contract it has offered is competitive in the Australasian and Pacific arena. The ANG Pilots that have left, the Pilots that are in the process of leaving, and the Pilots seeking to leave, do not see it competitive. And that is not solely based on the up to 20% Salary Package chop, (11% salary reduction, loss of 13th month bonus together with loss of loyalty bonus), and the no longer competitive salary compared to other available jobs, but very much attributable to the loss of lifestyle caused by the conditions of the 2015 contract.

For those that are contemplating any of these advertised positions, it may be worthwhile contacting an ANG Pilot direct. There are plenty of PDF copies of the 2015 Contracts floating around that they could assist you to get a hold of.

It may also be worth while asking your family if they would put up with only seeing you, at best, at your domicile at a port of own choosing, 5 days in every 28 days (at best).
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