Farman Biplane
29th Nov 2017, 03:04
Cathay Pacific Fires 49 Pilots in a Union Dispute - The New York Times (http://www.nytimes.com/2001/07/10/business/cathay-pacific-fires-49-pilots-in-a-union-dispute.html)
Cathay Pacific Fires 49 Pilots in a Union Dispute
By MARK LANDLERJULY 10, 2001
A labor dispute here abruptly escalated today as Cathay Pacific Airways dismissed 49 pilots a week after the pilots' union began a work slowdown against the carrier.
Cathay Pacific, which is based here and is Asia's fifth-largest airline, raised the salaries and benefits of its remaining pilots, hoping to end a confrontation that forced it to cancel 39 of its 122 flights today.
But the airline's moves drew a furious response from union leaders, who urged their members to rebuff the new pay package. They vowed to continue the job action, though they stopped short of calling a strike.
''This is a clear threat and intimidation to the rest of the pilots,'' said John Findlay, the secretary of the union, the Hong Kong Aircrew Officers Association. ''It's a disgraceful and shameful act.''
Cathay Pacific said it had dismissed the pilots because it could no longer rely on them. Among other misdeeds, it said they had verbally abused ground-crew workers and called in sick just before flights.
''What employer should have to tolerate that kind of behavior?'' said Antony Tyler, the director of corporate development. ''We don't doubt their flying ability, but Cathay Pacific needs pilots with professional attitudes.''
The mounting confrontation has put Hong Kong in an awkward position. The authorities in this free-market city pride themselves on not meddling in business. But the dispute threatens to spoil the summer travel season, just as tourism here has finally recovered from the Asian economic crisis.
Hong Kong's chief executive, Tung Chee-hwa, was roundly criticized two weeks ago when he appeared to side with Cathay Pacific against the pilots. Today, local newspapers and the head of Hong Kong's tourism board, Selina Chow, called on the government to intervene.
''The entire reputation and economic state of Hong Kong is in the hands of the two parties, which are refusing to talk,'' Ms. Chow said in an interview with the government-owned Radio Television Hong Kong.
Cathay Pacific said it would recruit replacements for the dismissed pilots, who represent 4 percent of its cockpit staff. The airline has chartered planes from several mainland Chinese carriers, including Air China, China Southern and China Eastern, to plug gaps in its schedule.
But the dispute has forced Cathay Pacific to halt flights on less heavily traveled routes, including its direct service from Hong Kong to New York, which flies over the North Pole. United Airlines recently announced it would discontinue its Hong Kong-New York flight because of poor business.
Timothy Ross, an analyst at UBS Warburg, estimated that the planes would cost Cathay Pacific $26 million a month. He said the suspension of the routes might increase profits in the short term because they are money losers. But, he added, ''I suspect they're moving from fat to muscle by now.''
Cathay Pacific's rocky relations with its pilots may seem odd, given that they are among the best paid in the world. A senior captain can earn more than $450,000; many are British or Australian expatriates.
''It's a bit like investment bankers going on strike,'' Mr. Ross said.
The airline last clashed with pilots in 1999, after it imposed a three-year contract that cut wages. Hundreds of pilots called in sick, forcing Cathay Pacific to cancel dozens of flights. The carrier said the cuts were necessary because of swooning profits during the Asian crisis.
Profits rebounded last year, however, which brought resentment of the contract to the surface. Cathay Pacific offered the pilots a 10.5 percent raise last month, which the union rejected. Today's package has a 9 percent raise.
Mr. Tyler said the new offer, which Cathay plans to impose unilaterally, was not as generous as the earlier one because ''frankly, there is less money available as a result of the damage done to the company.''
The extent of the damage became clear over the weekend, when the labor troubles were magnified by a typhoon that struck southern China. Thousands of passengers were stranded for hours at Hong Kong International Airport as Cathay canceled one flight after another.
Mr. Tyler said the pilots exploited the typhoon by calling in sick in unusually high numbers; Mr. Findlay said that was not true.
The spectacle of two well-spoken Westerners trading accusations through the Chinese-language news media is one of the strange sidelights of this dispute. Yet neither side has hesitated to play to local sympathies.
The pilots' union has sought to portray Cathay Pacific -- which is controlled by the British trading company Swire -- as a foreign corporation run by unfeeling colonials. Cathay Pacific says the union is sacrificing the good of Hong Kong in its pursuit of a greedy labor contract.
Cathay Pacific Fires 49 Pilots in a Union Dispute
By MARK LANDLERJULY 10, 2001
A labor dispute here abruptly escalated today as Cathay Pacific Airways dismissed 49 pilots a week after the pilots' union began a work slowdown against the carrier.
Cathay Pacific, which is based here and is Asia's fifth-largest airline, raised the salaries and benefits of its remaining pilots, hoping to end a confrontation that forced it to cancel 39 of its 122 flights today.
But the airline's moves drew a furious response from union leaders, who urged their members to rebuff the new pay package. They vowed to continue the job action, though they stopped short of calling a strike.
''This is a clear threat and intimidation to the rest of the pilots,'' said John Findlay, the secretary of the union, the Hong Kong Aircrew Officers Association. ''It's a disgraceful and shameful act.''
Cathay Pacific said it had dismissed the pilots because it could no longer rely on them. Among other misdeeds, it said they had verbally abused ground-crew workers and called in sick just before flights.
''What employer should have to tolerate that kind of behavior?'' said Antony Tyler, the director of corporate development. ''We don't doubt their flying ability, but Cathay Pacific needs pilots with professional attitudes.''
The mounting confrontation has put Hong Kong in an awkward position. The authorities in this free-market city pride themselves on not meddling in business. But the dispute threatens to spoil the summer travel season, just as tourism here has finally recovered from the Asian economic crisis.
Hong Kong's chief executive, Tung Chee-hwa, was roundly criticized two weeks ago when he appeared to side with Cathay Pacific against the pilots. Today, local newspapers and the head of Hong Kong's tourism board, Selina Chow, called on the government to intervene.
''The entire reputation and economic state of Hong Kong is in the hands of the two parties, which are refusing to talk,'' Ms. Chow said in an interview with the government-owned Radio Television Hong Kong.
Cathay Pacific said it would recruit replacements for the dismissed pilots, who represent 4 percent of its cockpit staff. The airline has chartered planes from several mainland Chinese carriers, including Air China, China Southern and China Eastern, to plug gaps in its schedule.
But the dispute has forced Cathay Pacific to halt flights on less heavily traveled routes, including its direct service from Hong Kong to New York, which flies over the North Pole. United Airlines recently announced it would discontinue its Hong Kong-New York flight because of poor business.
Timothy Ross, an analyst at UBS Warburg, estimated that the planes would cost Cathay Pacific $26 million a month. He said the suspension of the routes might increase profits in the short term because they are money losers. But, he added, ''I suspect they're moving from fat to muscle by now.''
Cathay Pacific's rocky relations with its pilots may seem odd, given that they are among the best paid in the world. A senior captain can earn more than $450,000; many are British or Australian expatriates.
''It's a bit like investment bankers going on strike,'' Mr. Ross said.
The airline last clashed with pilots in 1999, after it imposed a three-year contract that cut wages. Hundreds of pilots called in sick, forcing Cathay Pacific to cancel dozens of flights. The carrier said the cuts were necessary because of swooning profits during the Asian crisis.
Profits rebounded last year, however, which brought resentment of the contract to the surface. Cathay Pacific offered the pilots a 10.5 percent raise last month, which the union rejected. Today's package has a 9 percent raise.
Mr. Tyler said the new offer, which Cathay plans to impose unilaterally, was not as generous as the earlier one because ''frankly, there is less money available as a result of the damage done to the company.''
The extent of the damage became clear over the weekend, when the labor troubles were magnified by a typhoon that struck southern China. Thousands of passengers were stranded for hours at Hong Kong International Airport as Cathay canceled one flight after another.
Mr. Tyler said the pilots exploited the typhoon by calling in sick in unusually high numbers; Mr. Findlay said that was not true.
The spectacle of two well-spoken Westerners trading accusations through the Chinese-language news media is one of the strange sidelights of this dispute. Yet neither side has hesitated to play to local sympathies.
The pilots' union has sought to portray Cathay Pacific -- which is controlled by the British trading company Swire -- as a foreign corporation run by unfeeling colonials. Cathay Pacific says the union is sacrificing the good of Hong Kong in its pursuit of a greedy labor contract.