crewsunite
7th May 2009, 10:29
Cathay halts bookings as angry pilots call in sick
JO PEGG and Niall Fraser
May 29, 1999
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Cathay Pacific (SEHK: 0293) stopped taking bookings last night after pilots involved in a pay dispute called in sick, forcing cancellation of three flights.
The airline said it would not sell seats on aircraft departing in the next two weeks because of uncertainty over industrial action.
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The three flights had been cancelled after a 'much higher-than-usual' number of pilots called in sick, it said.
Passengers on a flight to Tokyo, a flight to Bangkok and one from Bangkok to Hong Kong had to be put on other Cathay flights because of the pilot shortage.
About half the 1,300 pilots have been given until noon on June 11 to decide whether to take pay cuts of up to 22 per cent in return for stock options, take early retirement, or face the sack.
The pilots say the ultimatum is unreasonable and have refused to rule out a strike or other industrial action.
The airline would not say how many pilots had called in sick, but corporate development director Tony Tyler said the number was significant and was 'obviously causing difficulties'.
The pilots' union, the Aircrew Officers Association, put the number of sick pilots at 40 to 50, a day after it urged fliers feeling stressed by the pay dispute to see a doctor.
General secretary John Findlay described the Cathay strategy as 'management by threat and intimidation', saying uncertainty over their futures had left his members 'unfit to fly'.
'All the pilots that have [called in sick] did so on the advice of a qualified doctor. That's not irresponsible. That's totally responsible behaviour and in line with the law,' said Mr Findlay.
However, Mr Tyler said: 'The company finds it hard to accept that anything the company is doing is increasing the pressure on the pilots. No single pilot has to lose his job over this issue.' Cathay says it has been forced to take cost-cutting measures because of declining profits and increasing competition.
The airline lost $542 million in 1998 due to the Asian economic downturn, its first full-year loss in 35 years.
Mr Findlay claims Cathay has overestimated the value of shares offered as part of the new deal. He said it was unacceptable for the airline to cut salaries after freezing pay for the past three years.
He had contacted the Labour Department which said it would act as conciliator. The association would sit down for talks 'any time, any where'.
Mr Tyler said Cathay was also prepared to talk, 'providing their proposals will not leave us with a legacy of unmanageable debt'.
He said 55 Cathay flights had been due to leave Hong Kong yesterday. Only two had been unable to go.
Cathay spokeswoman Quince Chong Wai-yan said bookings were being refused 'as a short-term pro-active measure we are taking as a responsible carrier.
'We're not saying we're cancelling flights,' she said.
Mr Findlay refused to rule out any form of industrial action, including an all-out strike, but declined to discuss the next step until after an extraordinary meeting of association members on Tuesday.
JO PEGG and Niall Fraser
May 29, 1999
Print a copy
Cathay Pacific (SEHK: 0293) stopped taking bookings last night after pilots involved in a pay dispute called in sick, forcing cancellation of three flights.
The airline said it would not sell seats on aircraft departing in the next two weeks because of uncertainty over industrial action.
Click here to find out more!
The three flights had been cancelled after a 'much higher-than-usual' number of pilots called in sick, it said.
Passengers on a flight to Tokyo, a flight to Bangkok and one from Bangkok to Hong Kong had to be put on other Cathay flights because of the pilot shortage.
About half the 1,300 pilots have been given until noon on June 11 to decide whether to take pay cuts of up to 22 per cent in return for stock options, take early retirement, or face the sack.
The pilots say the ultimatum is unreasonable and have refused to rule out a strike or other industrial action.
The airline would not say how many pilots had called in sick, but corporate development director Tony Tyler said the number was significant and was 'obviously causing difficulties'.
The pilots' union, the Aircrew Officers Association, put the number of sick pilots at 40 to 50, a day after it urged fliers feeling stressed by the pay dispute to see a doctor.
General secretary John Findlay described the Cathay strategy as 'management by threat and intimidation', saying uncertainty over their futures had left his members 'unfit to fly'.
'All the pilots that have [called in sick] did so on the advice of a qualified doctor. That's not irresponsible. That's totally responsible behaviour and in line with the law,' said Mr Findlay.
However, Mr Tyler said: 'The company finds it hard to accept that anything the company is doing is increasing the pressure on the pilots. No single pilot has to lose his job over this issue.' Cathay says it has been forced to take cost-cutting measures because of declining profits and increasing competition.
The airline lost $542 million in 1998 due to the Asian economic downturn, its first full-year loss in 35 years.
Mr Findlay claims Cathay has overestimated the value of shares offered as part of the new deal. He said it was unacceptable for the airline to cut salaries after freezing pay for the past three years.
He had contacted the Labour Department which said it would act as conciliator. The association would sit down for talks 'any time, any where'.
Mr Tyler said Cathay was also prepared to talk, 'providing their proposals will not leave us with a legacy of unmanageable debt'.
He said 55 Cathay flights had been due to leave Hong Kong yesterday. Only two had been unable to go.
Cathay spokeswoman Quince Chong Wai-yan said bookings were being refused 'as a short-term pro-active measure we are taking as a responsible carrier.
'We're not saying we're cancelling flights,' she said.
Mr Findlay refused to rule out any form of industrial action, including an all-out strike, but declined to discuss the next step until after an extraordinary meeting of association members on Tuesday.