Unions: BWIA wage cut illegal

BWIA unions are claiming the airline’s decision to cut wages is illegal. At a media conference at the headquarters of the Aviation Communication and Allied Workers Union (ACAWU) yesterday, union leaders said they would have to wait until workers receive their pay packages before they go to the Industrial Court.

Airline management told union leaders Wednesday that it would be cutting salaries by five to 20 percent. The union leaders say they the workers are being held to ransom since management is claiming that if salaries are not cut, the airline will not get money from Government to pay severance to workers retrenched in January. President of the Superintendents Association Theo Oliver said according to the association’s collective bargaining agreement management must “consult and agree” with unions before any change is made.

The union leaders renewed their call for president Conrad Aleong to resign, saying that the airline’s problems are being caused by mismanagement. Management mistakes include the $300 million used to acquire Dash 8s, crew training and spares and the inability to properly plan for the war in Iraq. Oliver said while Aleong has said the airline spends US$35,000 a day more for every US$0.01 increase in the price of fuel, the figure is really US$14,000 a day. Salary reviews were one of the conditions for the $116.8 million bailout by Government. Union leaders were part of last week Thursday’s Cabinet meeting at which the bailout decision was made and conditions set.

Jagdeo Jagroop, president of the Communication and Transport Workers Union (CATTU) said at the time the unions thought salary cuts would only be for executive management. “Are you now saying that workers have to dip into their pockets to help pay severance?” Oliver asked. At yesterday’s post Cabinet meeting, Prime Minister Patrick Manning said the order to cut salaries did not come from Government. “We didn’t tell them what to do. We told them that they need to bring expenditure into line,” he said. He said the Government did not force BWIA to break the law.

“Is that breaking the law? If the Government is saying that’s all it is prepared to fund what do you want them to do?” he said. Manning added that salary cuts are not the only option open to the airline’s management. “They have options. They can go into liquidation if they can’t bring expenditure in line with revenues. If they are insolvent they can go into liquidation. We said to BWIA this is an IMF style arrangement.” Oliver said BWIA management’s survival plan presented to Government does not say how the airline will increase its revenue. He said BWIA needs to focus on its cargo operations and BWIA Express service and the airbridge to increase its revenue.