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Wednesday, December 3, 2014

Cathay Pilots to Start Work-to-Rule Plans, May Hurt Flights

(Bloomberg) Cathay Pacific Airways Ltd.'s pilots union will do only what's required by their contracts from tomorrow after discussions about pay failed, potentially leading to flight delays at Asia's biggest international carrier.

Unionized pilots will start the so-called "contract compliance," in which officials will perform their assigned duties in strict conformance with their agreements, the Hong Kong Aircrew Officers Association said on its website. About 1,700 members based in Hong Kong, New Zealand and the U.S. will be asked to comply with the work-to-rule plans, it said.

Cathay Pacific, Hong Kong's biggest carrier, said in a statement it's "extremely disappointed." "This action is uncalled for, unnecessary and unproductive," it said.

Last month, the union's leaders were authorized by its members to take a decision on the work-to-rule campaign should talks about pay fail. With employees putting in only as much effort as is stipulated, operations at the busy Christmas and year-end period may be disrupted with flight cancellations and delays, the South China Morning Post newspaper reported on its website, citing unidentified pilots.

"It's unfortunate that a year of negotiations has brought us to this point," Chris Beebe, general secretary of the HKAOA said in a statement on its website. "The HKAOA looks forward to resuming talks with management for a fairer, more equitable agreement on pay," he said. The union has more than 2,000 members, according to its website.

No Discussions

Although the expected long-term salary deal wasn't reached this year, the company hopes that the pay award announced at the end of last month would allow both sides to close the year on a "positive note," Cathay said today, without disclosing details of the remuneration package. Discussions with the union have been placed on hold, the airline said.

The last time the pilots union went on a contract compliance plan was in 2001 and it went for an "extended period of time with no substantial disruption to flight services," the carrier said.

The union's members in October voted to reject an offer from the Hong Kong-based airline of a 10 percent pay increase over three years.

In 2012, the airline and its flight attendants union agreed on a labor deal in the third week of December, averting the threat of a possible industrial action through the Christmas travel period.

Deutsche Lufthansa AG, Europe's second-biggest airline, said today that a strike that began Dec. 1 will affect flights for the rest of the week after its pilot union called a further walkout tomorrow. The Vereinigung Cockpit union last night instructed pilots flying long-haul and cargo aircraft to strike in what would be the 10th action this year.

Lufthansa scrapped 1,350 flights during a strike than ran from midday on Dec. 1 through midnight yesterday, or almost half its timetable, while 29 flights were showing as scrapped on its website today in the aftermath.

Source: Bloomberg News by Clement Tan


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