Local pilots fly off the handle at expat perks
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Local pilots fly off the handle at expat perks
The Standard
Local pilots fly off the handle at expat perks - The Standard
Local pilots fly off the handle at expat perks
Staff Reporter
Wednesday, February 10, 2010
Cathay Pacific's local pilots are to boycott the Lunar New Year parade and other promotional activities by the airline in protest at what they claim is "unequal treatment."
Housing allowances for pilots are exclusive to expatriates regardless of whether they are Hong Kong permanent residents or not.
According to The Standard's sister newspaper Singtao Daily, housing allowances account for around 40 percent of the total income of expatriate pilots.
This means that while an expatriate can earn up to HK$110,000 a month, their local colleagues only get around HK$60,000.
Education subsidies are another area of complaint. This benefit is offered to all expatriates, but only to senior local pilots.
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According to a source, who asked not to be named, the request by 300 local pilots for equal treatment has fallen on deaf ears.
"Cathay Pacific Airways keeps claiming Hong Kong is its home, but the claim is not in line with its employment policy," the source said.
The decision to boycott Sunday's Lunar New Year parade is backed by the Hong Kong Aircrew Officers Association, which represents locals and expatriates.
Cathay Pacific Airways has around 2,400 pilots, of whom 12 percent are local Chinese. The union represents around 70 percent of all pilots hired by the airline.
The group has also sought help from three legislators to determine whether the airline is in breach of racial discrimination laws or regulations.
It is also threatening to take the case to the Equal Opportunities Commission.
Cathay expressed disappointment at the boycott. The airline also rebutted allegations of racial discrimination, saying the company treats its employees equally regardless of nationality or race.
It said the offer of some fringe benefits was intended to attract pilots from overseas to fill vacancies which could not be filled by the local labor market.
"It would be unfair for local pilots to ask for the same housing allowances as those hired from overseas," an airline spokesperson said.
Staff Reporter
Wednesday, February 10, 2010
Cathay Pacific's local pilots are to boycott the Lunar New Year parade and other promotional activities by the airline in protest at what they claim is "unequal treatment."
Housing allowances for pilots are exclusive to expatriates regardless of whether they are Hong Kong permanent residents or not.
According to The Standard's sister newspaper Singtao Daily, housing allowances account for around 40 percent of the total income of expatriate pilots.
This means that while an expatriate can earn up to HK$110,000 a month, their local colleagues only get around HK$60,000.
Education subsidies are another area of complaint. This benefit is offered to all expatriates, but only to senior local pilots.
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According to a source, who asked not to be named, the request by 300 local pilots for equal treatment has fallen on deaf ears.
"Cathay Pacific Airways keeps claiming Hong Kong is its home, but the claim is not in line with its employment policy," the source said.
The decision to boycott Sunday's Lunar New Year parade is backed by the Hong Kong Aircrew Officers Association, which represents locals and expatriates.
Cathay Pacific Airways has around 2,400 pilots, of whom 12 percent are local Chinese. The union represents around 70 percent of all pilots hired by the airline.
The group has also sought help from three legislators to determine whether the airline is in breach of racial discrimination laws or regulations.
It is also threatening to take the case to the Equal Opportunities Commission.
Cathay expressed disappointment at the boycott. The airline also rebutted allegations of racial discrimination, saying the company treats its employees equally regardless of nationality or race.
It said the offer of some fringe benefits was intended to attract pilots from overseas to fill vacancies which could not be filled by the local labor market.
"It would be unfair for local pilots to ask for the same housing allowances as those hired from overseas," an airline spokesperson said.
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Cathay Pacific response to locally employed pilots’ claim
9 February 2010
In response to a media enquiry about the non-participation of locally employed pilots at the Chinese New Year Parade, a Cathay Pacific spokesman said:
“It is very disappointing that the local pilots will not join the Chinese New Year Parade. The parade brings enjoyment to hundreds of thousands of people and our staff have always been keen to take part in it. Local pilots have been strong supporters of community activities for 20 years, and it will be disappointing to the many members of the community who benefit from their participation if they express their grievances by withdrawing from them.”
Below is background information on Cathay Pacific’s pilot employment policy and the Cadet Pilot Scheme for reference.
Employment Policy
Cathay Pacific is a fair employer in strict compliance with anti-discrimination regulations. Pilots are recruited into Hong Kong as locally employed or expatriate pilots on the basis of their experience. All locally employed pilots are treated exactly the same as expatriate pilots in terms of career progression and promotion opportunities. They also enjoy the same salary and benefits as expatriate pilots in Hong Kong including pension fund payments, medical care, education allowances for children attending international schools and kindergartens in Hong Kong, staff travel etc.
The only major differences are that locally employed pilots are not entitled to an expatriate housing allowance in Hong Kong and their children’s education allowances are exclusive of boarding schools overseas, as they are locally employed. However, all locally employed Captains receive a special cash allowance of HK$24,000 per month which can be used to offset rental or mortgage payments.
We recruit overseas for talents and skills that are not readily available in Hong Kong. It is well-established industry practice in Hong Kong to recruit expertise from overseas to fill talent gaps.
The goal of the airline is to increase the number of locally employed pilots - both on Bases overseas and in Hong Kong. Through the Cadet Pilot Scheme, we have made a huge investment over the past two decades in training young people who may otherwise not have had the opportunity to become pilots and to develop local talent in Hong Kong.
The suggestion of the pilots’ union to pay full expatriate housing allowance to locally employed pilots does not make sense. In effect, it would obviate the need for the Cadet Pilot Scheme when the airline could go out to the international pilots’ market for experienced professionals. We have thousands of applications from all over the world for pilot positions at Cathay Pacific.
Competitive Remuneration
Remuneration packages for Cathay Pacific’s locally employed pilots in Hong Kong are very competitive. For example, a locally employed Captain with 2 children in an international school will receive a total package per annum, including pension fund contribution, in the region of more than HK$1.8 million to HK$2.5 million depending on the pay scale, number of hours flown during the year and the age of the children.
The Cadet Pilot Scheme
Cathay Pacific launched the Cadet Pilot Scheme in 1988 to provide people in Hong Kong with the unprecedented training opportunity to become a pilot with one of the best airlines in the world.
The initiative is in line with the airline’s goal of increasing the number of locally employed pilots – both on Bases overseas and in Hong Kong – and reducing our dependence on expatriate pilots in the longer term.
Cathay Pacific has made a huge investment in training young people who may otherwise not have had the opportunity to become pilots. As of January 2010, more than 300 graduates from the Cadet Pilot Scheme have joined the airline as locally employed Second Officers.
Upon graduation from a 14-month training course at Flight Training Adelaide (FTA), the cadet pilots will join the airline as Second Officers in Hong Kong on local terms. Cathay Pacific takes up all training costs, estimated at about HK$1 million for each cadet pilot. Such training in other countries is invariably paid for by the trainees themselves.
The Cadet Pilots Scheme has been a huge success since its launch more than 20 years ago. We have received some thousands of applications from young people for the much coveted career development opportunity in Hong Kong.
In recent years, Cathay Pacific has further enhanced the training programme to double the number of Cadet Pilots under training at Flight Training Adelaide from approximately 30 to 60 per year. This is in anticipation of a shortage in supply of experienced pilots in the longer term.
To broaden the prospective talent pool, we also lifted the requirement for a cadet applicant to be a HKID card holder in June 2009. In other words, the scheme is now open to all applicants worldwide as long as they are willing to make Hong Kong their home. Since that time the airline has recruited 39 applicants for the Cadet Scheme of which 13 are Hong Kong Chinese by nationality, indicating the difficulties in hiring qualified candidates among HKID cardholders.
9 February 2010
In response to a media enquiry about the non-participation of locally employed pilots at the Chinese New Year Parade, a Cathay Pacific spokesman said:
“It is very disappointing that the local pilots will not join the Chinese New Year Parade. The parade brings enjoyment to hundreds of thousands of people and our staff have always been keen to take part in it. Local pilots have been strong supporters of community activities for 20 years, and it will be disappointing to the many members of the community who benefit from their participation if they express their grievances by withdrawing from them.”
Below is background information on Cathay Pacific’s pilot employment policy and the Cadet Pilot Scheme for reference.
Employment Policy
Cathay Pacific is a fair employer in strict compliance with anti-discrimination regulations. Pilots are recruited into Hong Kong as locally employed or expatriate pilots on the basis of their experience. All locally employed pilots are treated exactly the same as expatriate pilots in terms of career progression and promotion opportunities. They also enjoy the same salary and benefits as expatriate pilots in Hong Kong including pension fund payments, medical care, education allowances for children attending international schools and kindergartens in Hong Kong, staff travel etc.
The only major differences are that locally employed pilots are not entitled to an expatriate housing allowance in Hong Kong and their children’s education allowances are exclusive of boarding schools overseas, as they are locally employed. However, all locally employed Captains receive a special cash allowance of HK$24,000 per month which can be used to offset rental or mortgage payments.
We recruit overseas for talents and skills that are not readily available in Hong Kong. It is well-established industry practice in Hong Kong to recruit expertise from overseas to fill talent gaps.
The goal of the airline is to increase the number of locally employed pilots - both on Bases overseas and in Hong Kong. Through the Cadet Pilot Scheme, we have made a huge investment over the past two decades in training young people who may otherwise not have had the opportunity to become pilots and to develop local talent in Hong Kong.
The suggestion of the pilots’ union to pay full expatriate housing allowance to locally employed pilots does not make sense. In effect, it would obviate the need for the Cadet Pilot Scheme when the airline could go out to the international pilots’ market for experienced professionals. We have thousands of applications from all over the world for pilot positions at Cathay Pacific.
Competitive Remuneration
Remuneration packages for Cathay Pacific’s locally employed pilots in Hong Kong are very competitive. For example, a locally employed Captain with 2 children in an international school will receive a total package per annum, including pension fund contribution, in the region of more than HK$1.8 million to HK$2.5 million depending on the pay scale, number of hours flown during the year and the age of the children.
The Cadet Pilot Scheme
Cathay Pacific launched the Cadet Pilot Scheme in 1988 to provide people in Hong Kong with the unprecedented training opportunity to become a pilot with one of the best airlines in the world.
The initiative is in line with the airline’s goal of increasing the number of locally employed pilots – both on Bases overseas and in Hong Kong – and reducing our dependence on expatriate pilots in the longer term.
Cathay Pacific has made a huge investment in training young people who may otherwise not have had the opportunity to become pilots. As of January 2010, more than 300 graduates from the Cadet Pilot Scheme have joined the airline as locally employed Second Officers.
Upon graduation from a 14-month training course at Flight Training Adelaide (FTA), the cadet pilots will join the airline as Second Officers in Hong Kong on local terms. Cathay Pacific takes up all training costs, estimated at about HK$1 million for each cadet pilot. Such training in other countries is invariably paid for by the trainees themselves.
The Cadet Pilots Scheme has been a huge success since its launch more than 20 years ago. We have received some thousands of applications from young people for the much coveted career development opportunity in Hong Kong.
In recent years, Cathay Pacific has further enhanced the training programme to double the number of Cadet Pilots under training at Flight Training Adelaide from approximately 30 to 60 per year. This is in anticipation of a shortage in supply of experienced pilots in the longer term.
To broaden the prospective talent pool, we also lifted the requirement for a cadet applicant to be a HKID card holder in June 2009. In other words, the scheme is now open to all applicants worldwide as long as they are willing to make Hong Kong their home. Since that time the airline has recruited 39 applicants for the Cadet Scheme of which 13 are Hong Kong Chinese by nationality, indicating the difficulties in hiring qualified candidates among HKID cardholders.
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yes you are correct and quite a valid point actually... However, a lot of the CEP were actually born or brought up elsewhere. The only reason why they're on local terms is because they have HK residency. NOT because they joined through the cadet program as there are couple "direct entry" pilots who were basically told by the company that they're considered local because of their HK ID card.
Expats chose to base in HKG and are getting housing and education allowance as compensation because they're not in their own countries, which I don't think ANYONE (including the CEP's) would object is a fair deal. So logic would indicate if an CEP who chooses to be based anywhere outside HKG should be getting housing and education allowance as compensation as well because in that case they would be out of their own country (HKG). I bet you all bases will be filled up within seconds.
With international cadets just around the corner, we're gonna start seeing non-HK ID holder signing onto local contracts. The fact that Mr. Rhodes has been constantly probing the question of "how long does one take to become a local", I really wonder what he got up his sleeves for the next COS.
Expats chose to base in HKG and are getting housing and education allowance as compensation because they're not in their own countries, which I don't think ANYONE (including the CEP's) would object is a fair deal. So logic would indicate if an CEP who chooses to be based anywhere outside HKG should be getting housing and education allowance as compensation as well because in that case they would be out of their own country (HKG). I bet you all bases will be filled up within seconds.
With international cadets just around the corner, we're gonna start seeing non-HK ID holder signing onto local contracts. The fact that Mr. Rhodes has been constantly probing the question of "how long does one take to become a local", I really wonder what he got up his sleeves for the next COS.
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actually, if this surprises you, no. I know at least two (one resigned already) who signed as a DIRECT ENTRY pilot and was unilaterally changed to a local contract by the company once they found out about their HK residency.
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given the track record of this company, don't be surprised if one day u realize ur contract has been unilaterally changed to local term once they establish the benchmark for them to use as "localization" for expats.
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Yes christn, and A scale is now B scale, do you not see the writing on the wall the company is already suggesting "when does an expat become a local" 
or are you against certain groups fighting for better conditions?
or are you against certain groups fighting for better conditions?
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So logic would indicate if an CEP who chooses to be based anywhere outside HKG should be getting housing and education allowance as compensation as well because in that case they would be out of their own country (HKG).
The headquarters for Cathay is Hong Kong. All flights originate and terminate in Hong Kong. Bases were opened to send expats back to their home country and save on housing allowances, where is the logic in sending CEPs to bases and paying them housing allowance??? I don't get it!
As much as I hate management I have to agree with this statement
The suggestion of the pilots’ union to pay full expatriate housing allowance to locally employed pilots does not make sense. In effect, it would obviate the need for the Cadet Pilot Scheme when the airline could go out to the international pilots’ market for experienced professionals.
Do what Emirates does and pay the LEPs a higher salary to balance out the overall package. But don't fixate on the housing allowance.
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Cathay expressed disappointment at the boycott. The airline also rebutted allegations of racial discrimination, saying the company treats its employees equally regardless of nationality or race.
They get away with as much as they can because the few that are discriminated against are a small number that would find it hard to mount a legal challenge to them. Even if they win, appeal, win again. It takes 10+ years to get anywhere with this company.
Cathay does discriminate, on nationality, race, sex and gender!!! Ask around and you'll find it all.
With on-shoring that is happening around the world with Cathay at the moment - there are going to be a few more court appearences for the managemnet in the very near future.
Not as bad as the middle east carriers but pretty damn close!!!
In flying we have a term called Airmanship. All pilots try to achieve this, management has nothing like this. Says something...
They get away with as much as they can because the few that are discriminated against are a small number that would find it hard to mount a legal challenge to them. Even if they win, appeal, win again. It takes 10+ years to get anywhere with this company.
Cathay does discriminate, on nationality, race, sex and gender!!! Ask around and you'll find it all.
With on-shoring that is happening around the world with Cathay at the moment - there are going to be a few more court appearences for the managemnet in the very near future.
Not as bad as the middle east carriers but pretty damn close!!!
In flying we have a term called Airmanship. All pilots try to achieve this, management has nothing like this. Says something...
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Some locals in many other sectors in HK, and yes even in Cathay, do have the benefit of a housing allowance. It just depends on where you draw the line.
I don't understand how some fail to see the logic of a group fighting for better conditions which may have a beneficial edge for the rest in the long run. This whole "you know what you got when you signed on the dotted line" ideaology is fatalistic. If that is what you believe, please don't bother with thinking about payrises or improved conditions.
Because you should have known when you joined.
I don't understand how some fail to see the logic of a group fighting for better conditions which may have a beneficial edge for the rest in the long run. This whole "you know what you got when you signed on the dotted line" ideaology is fatalistic. If that is what you believe, please don't bother with thinking about payrises or improved conditions.
Because you should have known when you joined.
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So if a pilot's nationality happens to be the same as the company's main base of operations, its ok to forgo in his/hers entire career the lucrative housing allowance no matter where he/she goes, and thus earn remarkably less. That would be discrimination.... if it happened in most Western countries!
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Like lambs to the slaughter..
Here we go again, down a path of one group versus another within our pilot body. The only difference this time is that it's in public. Great PR - will we ever learn?
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my 2 cents worth
I think the important point to note here is the ‘talent gap’. Without expat pilots and other expat roles that are filled at all levels in Cx there would be no airline. If I stayed in Australia working for Qantas (previous employer) I would not get the benefits discussed here. I made a choice, to leave my country and work overseas. LEP Cadets made a choice to stay in their own country and have their flying paid for. I paid for my lessons and took my licence to Hong Kong. Cadets are not bonded to Cx so they can make the same choice my family and I have made and leave their home and go overseas for more money. It’s quite simple really. If Cx were to scrap the housing allowance, for example, it is quite clear that most if not all expatriate pilots would have to leave Hong Kong and possibly Cathay Pacific as we simply could not afford to live in Hong Kong. Facts are , Cadets had their flying paid for (not mowing lawns or working in dingy bars to pay for lessons), had job security from day one, and have never been out of work. If they want more money they should be prepared to take risks and go looking for employment overseas.
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Um...
How is it that if housing were to be scrapped, that expats wouldn't be able to afford living in hong kong, but locals can....and do.....just.
Sounds like advocating lesser living for people who work beside us, living in the same place and doing the same job.
Same base same place same case.
btw everyone look out because although the company's hinted, for a while already, at reinventing the term 'expat' if you have permanent residency, I haven't seen it put to print until now....a step up in action if I ever saw one.
How is it that if housing were to be scrapped, that expats wouldn't be able to afford living in hong kong, but locals can....and do.....just.
Sounds like advocating lesser living for people who work beside us, living in the same place and doing the same job.
Same base same place same case.
btw everyone look out because although the company's hinted, for a while already, at reinventing the term 'expat' if you have permanent residency, I haven't seen it put to print until now....a step up in action if I ever saw one.
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I don't understand how some fail to see the logic of a group fighting for better conditions which may have a beneficial edge for the rest in the long run. This whole "you know what you got when you signed on the dotted line" ideaology is fatalistic. If that is what you believe, please don't bother with thinking about payrises or improved conditions.
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CX would never shoot themselves blatantly in the foot like that by diminshing current housing allowance in one fell swoop...their methods are a lot more insidious, and already happening.
The press release they put out: "The initiative is in line with the airline’s goal of increasing the number of locally employed pilots – both on Bases overseas and in Hong Kong – and reducing our dependence on expatriate pilots in the longer term."
Never thought that they would admit it in black and white though....can't say I saw that coming.
Having opened up the cadet program to everyone and not just HKID card holders, how long before expat terms become a thing of the past?
Or is it alright to let it slide, just as long as it doesn't happen to me....who cares about the fellas who rock up to the door in 15 years time eh?
The press release they put out: "The initiative is in line with the airline’s goal of increasing the number of locally employed pilots – both on Bases overseas and in Hong Kong – and reducing our dependence on expatriate pilots in the longer term."
Never thought that they would admit it in black and white though....can't say I saw that coming.
Having opened up the cadet program to everyone and not just HKID card holders, how long before expat terms become a thing of the past?
Or is it alright to let it slide, just as long as it doesn't happen to me....who cares about the fellas who rock up to the door in 15 years time eh?
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Mullah Lite,
You obviously have not bothered to apply to another carrier that offers expat packages, because you are quite content with your package and must have a strong connection to Hong Kong. Let Cathay take away the housing allowance and watch the mass exodus of expats out of HKG.
Not exactly! Same argument can be made about A scale B scale then!
You obviously have not bothered to apply to another carrier that offers expat packages, because you are quite content with your package and must have a strong connection to Hong Kong. Let Cathay take away the housing allowance and watch the mass exodus of expats out of HKG.
Same base same place same case.
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69 er
I completely agree with you on the mass exodus point, I was just saying that the company would try to avoid making an obvious move to prevent that from happening. They won't take away the housing from the current contract because it would result in a brain drain, like you said, but it isn't stopping them from reinventing the game for newcomers.
Re: your point about A vs. B......but I've never made a case against B scalers fighting for an A scale package, I have always believed it's their right to fight for better conditions. Wouldn't you?
I completely agree with you on the mass exodus point, I was just saying that the company would try to avoid making an obvious move to prevent that from happening. They won't take away the housing from the current contract because it would result in a brain drain, like you said, but it isn't stopping them from reinventing the game for newcomers.
Re: your point about A vs. B......but I've never made a case against B scalers fighting for an A scale package, I have always believed it's their right to fight for better conditions. Wouldn't you?
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I can't think of one local who would actually want expat benefits to decrease, whereas you seem quite happy with the status quo; you getting the benefits and us getting nothing.