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CX New Pay/Benefits

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Old 13th Feb 2007, 10:45
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CX New Pay/Benefits

We will conduct a review of pilot’s pay scales and benefits worldwide in 2007. It will be the end of 2007 before it is complete.

Market forces will be the driving factor on pay and benefits. We will be looking at local airlines in all base areas to determine pay scales. This will not necessarily be a major airline unless we can find a major airline that is paying less than we are now.

We cannot compare a year 1 744 Capt/FO at British Airways with a year 1 744 Capt/FO at Cathay Pacific. The 744 Capts in CX are much younger (meaning we will have to pay more over time) than BA. It takes longer to obtain a 744 position at BA than it would at CX; therefore we have to compare apples with apples.

In our Freighter Operations, we will compare Low Cost Cargo Airlines, as we must remain competitive with these airlines if we want market share. There are numerous LC Cargo Airlines starting in Mainland China we have to compete with. Therefore market forces will prevail and not your base area, wherever that may be. We need to be competitive.

We have some freighter pilots leaving but we expected, as some have not made the Cathay Standard. We had planed for this movement the last several months.

We have had some success in the past few years with our productivity increasing 20% on the passenger fleets and just fewer than 50% on the freighter fleet. This will help in our ATK calculations.

As many will remember, we came to an agreement on airlines used many years ago and we will be looking at those and many start-up airlines since then to compare. I am sure the pilot body will agree with our new list of competitive airlines.

On the topic of pay/benefits, most of the pilot bodies are on lower conditions and we would like to move on the lower side. Some of our more Senior Members may have to give up some benefits/pay and our lower member may gain some benefits/pay. There are a majority of pilots in the middle and our extenders are joining on the middle or less package, we think it would be prudent to have one COS.

With this increased package, we will be implementing age 60-65 into your COS. This will benefits all pilots. With this increase in retirement, we will look closely at PF schemes as one will increase their PF with longer years worked. We will lower the PF contributions in order to keep our cost base down.

With our new and improved Cabin Class on all fleets, we will revise the class of travel when traveling on company time. We believe we have a premium E/Y cabin and this will be suitable for our First Officers/Second Officers and C Class for Captains regardless of operations. There will be no upgrades to F Class; we believe this should be reserved for our Premium Class Passengers. Staff Travel will follow similar lines.

In turn we will offer an increase in staff travel benefits. We will offer ID 91’s on all flights but reserve the right to charge extra fees as we see fit. I am sure all will be happy with this new improvement in staff travel.

We are working with the Hong Kong Government ((Immigration) (as we are doing with the IRD)) on housing benefits for the future. Anyone in possession of a Hong Kong Permanent Identity Card will not be classified as an Expatriate and the benefits with reflect a D level local employee. We believe this to be a fair and transparent for all employees in Hong Kong.

We are in the process of amalgamating Dragonair. Dragonair pilots will chose between a one off accept the new CX contract or remain at Dragonair’s old conditions. We are still some months away from finalizing this deal, however, those that join the new and improved CX contract will be given a Date of Joining of January 1, 2007 on the Cathay Pacific Seniority List and in Seniority on the Dragonair list. This will benefit the Cathay Pacific Group immensely. Those that do not will remain at Dragonair and the old system and be phased out.

It has been mentioned before, we are wet leasing the KA freighters and you may see some KA Freighter with a Cathay call sign. For the moment, the KA structure is the most cost effective and we will continue to use the most cost effective crew. We may wet lease some Dragonair A330’s on some Cathay Pacific routes in the future.

As for Pilot Hiring, we have many applications and our New Recruitment Manager assures me we will not have a problem in Recruitment.

We have started hiring DEFO’s on the Australian and European bases, which is proceeding nicely. With the onset of our New State of the Art 777-300ER’s, we will be hiring many new pilots from North America. We have to finalize the routes on which these new aeroplanes will operate and then start our North American hiring plan. We have vast plans for NA with more cargo routes (Miami/Mexico City) and our long awaited New York - London service. When we have our new route structure in place we will be hiring more North American based pilots. What country you live in means nothing to us that is your responsibility as with commuting.

We reserve the right to place any pilot on any aircraft that WE chose as per the current GUIDELINES (Yes they are only guidelines and will not be seniority driven in the near future). This is to reduce our huge training costs.

We will be hiring regional jet/turboprop pilots that cannot get into the majors in their own countries. Depending on experience we will put some on bases (DEFO’s) and others to fly the Dragonair A320’s here in Hong Kong (Asia’s World City). Of course on our new and improved Conditions of Service.

We will not hire pilots that are furloughed from Major Carriers. They expect too much. Now we see why many carriers are in trouble. We will hire from Regional Airlines where conditions are not as good as ours, so it will be a step up and the new hires will not complain as much. If they do, we have a system in place.

Our Training Department will have time to engrave the Cathay Way before they come up for command. These younger pilots, while may not have the experience, are very teachable. We have found this out with some very young freighter captains that have upgraded in the last 4-5 years (Formally CX Second Officers). We now have the tools (Dragonair/Increase NA Domestic routes) to start a very good Cathay Foundation with these young pilots. If you are one of these young regional jet/turboprop pilots, send in an online application.

For our current staff, you are doing a great job. We still have good people willing to go that extra mile to help our profits, our company and our passengers. Please continue to do so. Again our Training Staff are Tops but we will have to work the Trainers harder in the coming months and all Training Staff are going well beyond the call of duty, especially with roster changes. Please keep up the good work. We are counting on you.

Unfortunately you will have to continue on your same pay and benefits for the foreseeable future until our review is complete but we will offer more get-togethers for our Training Staff to show our appreciation.

To All Our Staff:

Sun nin fai lok
Gung hei fat choi

Welcoming The Year of the Pig.

The Management

Last edited by The Management; 13th Feb 2007 at 11:00.
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Old 13th Feb 2007, 10:54
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Fan f...... tastic - haha..

Just as funny as it sounds - just as true it might be. Imagine. By the way quiet a few of T.Ms points are already reality. Nice.

The show must go on.
Y
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Old 13th Feb 2007, 13:22
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haha, cant believe what i just read!

Aussie
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Old 13th Feb 2007, 15:01
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We will not hire pilots that are furloughed from Major Carriers. They expect too much. Now we see why many carriers are in trouble. We will hire from Regional Airlines where conditions are not as good as ours, so it will be a step up and the new hires will not complain as much. If they do, we have a system in place.
The result will be reduced short-term costs but increased long-term costs due training. CX is cutting off a foot to save a toe. Penny smart and dollar dumb again.

I give CX only 5 years before a major shake-up from Swire. They have entered the slippery slope scenario. There will be a passive revolt with pilots walking away in droves in just a couple of short years. The current departures are pale in comparison.

CX will be doing much more "un-scheduled" maintenance in the future. They won't be able to expand and in this business you either expand or die.

CX doesn't have state support or funding. It is on its own and the pirates are being slowly isolated. What could be the best company to work for has taken the low road of greed and intimidation. They are following the path of Emirates and Swire doesn't have the need to save face and dump billions into a mediocre operation to keep it afloat.

The Management is correct. This is how they think but they just don't get it yet. They still think they are in the driver's seat. Unfortunately, they still think the wheel is on the right but we have it over on the left!

Good Luck CX!
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Old 14th Feb 2007, 02:44
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tell me this can't be for real?
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Old 14th Feb 2007, 05:38
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I would say one year! Swire/CX seem to be on a five year cycle

1993 OBS and B scale, restructuring
1998/9 Asian crisis, new contract, restructuring
2003 SARS, restructuring
2008?
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Old 14th Feb 2007, 16:51
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Maybe it's time the pendulum swings the other way. Discount airlines are paying well these days, along with the growing pilot demand, I would hope we see a rise in pilot wages globally.
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Old 14th Feb 2007, 23:00
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You and the rest of the pilots would be happy to see a payrise too!

Not sure its going to happen anytime soon tho!

Aussie
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Old 14th Feb 2007, 23:22
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You and the rest of the pilots would be happy to see a payrise too!

Not sure its going to happen anytime soon tho!

Aussie
Agreed! They are too thick to see the storm approaching.
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Old 15th Feb 2007, 09:57
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We are looking into the DEC scenario. It is a more cost effective to hire DEC with regard to training. Foreseeing the future, we are starting our DEC campaign. As you can see, we introduced Rapid Command Courses with no resistance from the pilot body.

We will Cat B many S/O’s and F/O’s. With some freighter F/O’s leaving and the rest Cat B’d, very soon we will have exhausted suitability qualified candidates for our 744F operations. As we did in 1996, we will be advertising for DEC on the 744F, as we do not have enough qualified in house candidates. Please refer to our latest NTC on Freighter Operations.

More and more 744 Passengers Captains are not volunteering to fly the Freighter Aircraft is only exacerbating the situation. This must not continue with the Pax F/O’s. If this happens we will have no other choice then to find these pilots not suitable for upgrade. We will then hire more DEC. We like to thank those who still volunteer to fly the Freighter Aircraft. You are doing a great job.

We MUST keep our operations intact and will use whatever measures necessary to achieve that goal, regardless of contracts, agreements or AFTL’s.

After we start hiring DEC and after the surge in training is complete, we will slowly start awarding Cat A status to S/O’s and F/O’s. We will only do this after the initial surge in training. This will last a minimum of two years.

I can assure you that no Captains will be affected by this new company policy and we will pay bypass pay to suitably qualified S/O and F/O candidates. These DEC will have seniority as of date of hiring and staff travel seniority will prevail for our F/O’s and S/O’s.

We understand this will upset some of our pilot bodies but we must remain profitable or OUR bonuses will be under threat. I am sure you understand.

Just think of it as short-term gain for long-term profitability and sustainability of our Airline.

We urge more Team Members to join our Training Team. We will be asking for more Trainers to join the 744 Fleet. If you would like to bypass seniority and be a part of our training team, we have many Training Positions for you. This could pave the way to a more managerial position in the future for those that accept.

We have a very lucrative training package and it is a very rewarding position. As in 1996 with ASL, we need pilots to train the new DEC for those up and coming Command Positions.

As with the current DEFO campaign, the DEC will be only be available on a base.

Hope your Year of the Pig is Profitable

Sun nin fai lok
Gung hei fat choi

The Management
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Old 15th Feb 2007, 10:21
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Rather excellent! LOL!
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Old 23rd Feb 2007, 07:55
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Rumour has it the DFO will offer A Scale to all Captains. Should make the B Scale Captains happy.

Has anyone else heard this?
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Old 23rd Feb 2007, 09:11
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This is an old chestnut which gets trawled up from time to time.

Suggest refrain from holding collective breath if I were you.
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Old 23rd Feb 2007, 11:03
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A-Scale command salary for all in the LHS!

Great, we had better vote yes for....

21 hr ULR
15 hr 3 Man europe
86 hrs

etc etc

so that one gets thru.


gee wizz, they do care about us after all.
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Old 23rd Feb 2007, 16:42
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Down the River

If they did that then I would happily sell all the FOs and new joiners as far down the river as they wanted!
But it aint gonna happen.
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Old 26th Feb 2007, 20:36
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We said A Scale was offered to discredit the HKAOA President at the time. Our propaganda machine worked very nicely. Many of the members still believe there was an offer on the table, but I'm afraid not. Do you actually believe we would pay A Scale salary to Captains when they are doing it for much less?

We will not even entertain that idea. We won the Union Bust remember.

We believe there should be one pay scale for all pilots in Hong Kong (Asia’s World City) with no premium. Hong Kong is a very nice place to live and is nowhere what it was 25-30 years ago. Peak Living is very nice, thank you.

We have a discrepancy between A and B Scale pilots. We would like to make them one, however increasing salaries don't help bonuses. We will increase the B Scale Captains salary and cut the A Scale salary. This will automatically put all captains on the same pay scale. We will give the F/O’s, JF/O's and S/O's a pay increase.

Freighter Pilots will receive a pay increase regardless of position or base.

We are still reviewing the Passenger Basing Salary. We believe some bases are overpaid.

For this we will have to terminate the A Scale Provident Fund as of January 1, 2008. As of that date we will pay what is owed to the A Scale pilots. On that date, they will join the B Scale provident fund. We can only fund the pay increase if the A Scale Provident Fund is terminated. We will leave this up to the members to decide.

In order to make medical benefits fair to all pilots, we will cover all pilots' worldwide and dependants in Hong Kong and Country of Domicile. There will be no limit on daily use. In this case the travel fund would be terminated as of January 1, 2008 and all pilots will receive Priority 4 Free of Charge Tickets. We don't like to see pilots with a travel funds receive FOC Priority 4 Tickets. Most pilots with travel funds use their FOC's to travel to their own country and the travel fund as holiday travel. We have kept records on this for many years.

Staff travel is company policy, not COS.

If these motions pass, we will offer all Training Captains 14% of basis salary and this will be Provident fundable. The current STC and BTC increments will remain. This will only take effect if the above motion passes. We would like to see more trainers.

We will offer this to the HKAOA and we will insist the HKAOA present this to the membership. We will leave this to a vote.

I am sure some pilots will be disappointed with this increased offer but this helps with the long-term survivability of the Cathay Pacific Group.

The 21 hour ULH duty and the 15 hour ULH with 3 pilots are AFTL's and not COS. We are campaigning the CAD. We have shown the CAD that pilots use the 15-hour duty many times and it does not affect fatigue and this should be normal and not discretion. With this mounting paper work we presented, the CAD is slowing seeing our viewpoint. Again no resistance from the pilot group and we thank you very much.

The over 20-hour duty day is coming. We have convinced the HKCAD of this. Why have an Airbus/Boeing Aircraft capable of over 20 hours of flight and be limited to 18 hours by pilots? This is not good business and the Cathay Pacific Group is unable to open up new routes because of this. This is changing. And fortunately it is out of the pilot's control. The HKAOA have agreed to the above two points.

If this motion fails to pass, all talks about pay and benefits will cease.

We are looking forward to your input on this very important matter.

The Management.
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Old 27th Feb 2007, 21:16
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Concerned

After reading the recent posts on this forum I am now concerned. While watching so many leave, I, up to now, had decided to make CX a career. But after reading most of the recent posts and especially with regards to Cos and pay I might have a change of heart.
Pay is one thing but the COS is another. Hiring DECs, making us PT/PX in economy, and taking away the love seats on 744 (80H/K) are things that I will not really be happy with. Flying half way around the world is hard enough nevermind trying to sleep at odd hours and in a closet none the less. The 777 is going to have a really nice sleeping compartment. Why is the 744 losing what they have?
After working VERY HARD at Cathay and then seeing a DEC would upset me. I could right now go to work for a number of airlines as a DEC myself. I have chose not to as I have put in a lot of time and effort into Cathay. Erroding what we have now I think may change my mind. We have not asked for much from Cathay.
These things mentioned on this board are really why folks are quitting. I do not want to leave but taking away what little perks we have i.e. again, business class/first class, quick upgrade on freighter, reasonable AFTL's are just going to upset more people. We should be working on improving the COS in what ever way possible to get people to stay and or apply. I really wonder who is going to fly all the new jets including the 747-8's that are coming?
Please don't make Cathay a place to leave. Make it a place to stay. I'd really like to stay.
 
Old 6th Mar 2007, 04:43
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I’ll vote for increasing my pay and benefits and decreasing the senior pilots pay and benefits. Fair is fair.

I am sure the B Scalers would not have a problem with this.

Put it to a vote and see what happens. Another 1999, me thinks not.
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Old 6th Mar 2007, 10:59
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Mr. Management, I will give you credit that you do have a very creative mind. But maybe you can put that creative mind into good use by helping the company increase yield. Once the yield improve, maybe the REAL management will have more reason to improve our terms and condition. Good idea isn't it.

It is funny how many people on this forum keeps complaining about people leaving the company and the CoS is S*&t, but I keep seeing more and more people joining this supposingly not so great company? Really weird isn't it? Also all those rumor of people leaving back to the US airlines, I wonder how long will they stay in the black before they goes back into the red and layoff another 50,000 people.

Anyway, I am pretty happy and almost everyone that I know in the company are relatively happy. There's area for improvement for sure but it is not a bad as Mr. Management had suggested.

Finally, good luck for all those who love bad-mouthing CX. I wish you a successful career else where on the other side of the planet, where the CoS are so great that your pension plan can be taken away by your so call GOOD management, just because your airline is in chapter 11. I can just imagine what a good life you will get after your retirement from such a GOOD airline! Good luck buddy!

bus
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Old 6th Mar 2007, 11:06
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Nice first post triple b. Good to have you along.
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