Wednesday, January 12, 2011

Strike looms as Cathay Pacific contract negotiations stall

Hong Kong - Hong Kong-based Cathay

Pacific Airways
Ltd on Tuesday refused to reopen talks with its cabin crew's union, raising the risk of a strike ahead of the busy Lunar New Year holidays.

'Our year-end pay arrangements were made clear to all staff at the end of November,' director of corporate affairs Quince Chong said. 'We will not reopen talks and we need to move on.'

Dora Lai, chairwoman of Cathay Pacific Flight Attendants' Union, said it was now considering the next step. Members on Monday voted to work to rule if the negotiations over pay broke down.

The union claims the 3,000 cabin crew who are paid monthly have been working under a pay freeze for 12 years.

The airline says that their contracts include an annual increase of 3 to 3.5 per cent.

In November, Cathay offered to hike salaries this year by 4.5 per cent instead of the usual raise, plus a 13th-month payment and five weeks' profit share for 2010.

The union rejected the deal, but the airline said it had received a positive response from many cabin crew members to its 'fair and market competitive' offer.

In December, a threatened strike by the airline's 2,500 pilots was averted by a pay rise offer which their union is still considering.

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