Despite framework agreement, cabin crew may yet strike Cathay in August
Framework agreement with cabin crew, which was to be formalised tomorrow, now in doubt as union blasts airline's 'bankrupt credibility'
PUBLISHED : Sunday, 31 May, 2015, 5:39am
UPDATED : Sunday, 31 May, 2015, 5:39am
The threat of a summer strike by Cathay Pacific's cabin crew has returned, two days after the company and the union appeared to have settled their disputes on pay and benefits and signed a memorandum setting out the framework for an agreement.
"The company's credibility has gone bankrupt," said Dora Lai Yuk-sim, chairwoman of the 6,300-member Cathay Pacific Airways Flight Attendants Union, which represents 70 per cent of the airline's cabin crew.
"I cannot rule out the possibility of resuming our preparation for a strike, because the company has no credibility. How can we still trust them?"
On Thursday night, the union and the airline resolved their dispute on three issues and, together with Labour Department representatives, signed a memorandum. The union announced then that it had called off its preparations for strike action in August. The memorandum sets out the framework of what both sides agreed after two days of negotiations. The union and the airline were scheduled to sign a formal agreement tomorrow.
On Friday, the airline sent the union a copy of the formal agreement through the Labour Department.
However, Lai said: "It is the same as the memorandum. Many details were missing. An agreement is supposed to contain a lot more details than a memorandum."
But the airline stressed last night that it remained "committed to the items" agreed with the union in last week's talks.
A spokesman for the airline said it had been informed by the Labour Department that the union wanted to incorporate more information into the agreement and had since revised the document.
While the latest problem may be just a misunderstanding, the union said last night that it had not received a copy of a revised agreement and therefore could not rule out resuming its strike preparations. The dispute centres on three issues. In one, the union wanted to reverse a cut in the lunch allowance for flight attendants in Melbourne.
Crew were originally getting A$60 (HK$372) per meal but this had been reduced to A$35. The airline has agreed to reverse the cut and compensate flight attendants who were only paid the A$35 rate in past months.
Lai said the airline had satisfied the union's three demands last week, but some additional details agreed by both sides in the talks were missing.
For example, the airline said it would conduct an audit in July to ensure overseas stay allowances were in line with the framework that both sides agreed.
The review is also aimed at making sure flight attendants who received the A$35 Melbourne allowance have really been compensated.
In another example, the airline said it would "talk to" and "resolve with" the union about any changes to its output allowances in the future. Lai said the agreement only said it would inform and discuss the matter with the union.
"It means that the changes will not need to be mutually agreed on," she said.
Lai made it clear she would not sign the formal deal tomorrow if the items agreed in the framework are not included.
A Cathay spokesman said last night that the airline "reiterates its commitment to the items agreed with" the union in last week's meetings.
The airline sent a proposed agreement to the union based on the memorandum that both sides signed, an airline spokesman said. Subsequently, the Labour Department told the airline the union wanted to incorporate more information into the agreement.
"We agreed and revised the proposed agreement," he said, adding that the agreement had been sent to the department.
This article appeared in the South China Morning Post print edition as Cathay may still be hit by strike