Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Most Cathay Pacific pilots and cabin crew accept permanent pay cuts

Stock MarketsOct 29, 2020 06:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Sign of Cathay Pacific is seen at its headquarters Cathay City in Hong Kong

By Jamie Freed

SYDNEY (Reuters) - Hong Kong's Cathay Pacific Airways Ltd (HK:0293) said on Thursday that a majority of pilots and flight attendants had signed new contracts that will result in permanent pay cuts.

Cathay last week announced plans to cut 5,900 jobs to help it weather the pandemic, including nearly all of the positions at its regional airline Cathay Dragon, which it has shut down.

It is also seeking changes to contracts with pilots and cabin crew as part of a restructuring that would cost HK$2.2 billion ($284 million).

"We are very grateful that a majority of our pilots and cabin crew have already signed up to the new conditions of service," the airline said in a statement.

"We would like each and every one of our pilots and cabin crew to join us and be part of Cathay Pacific's future."

The employees have until Nov. 4 to sign new contracts but they will receive one year of transitional benefits like housing allowances for pilots rather than the two years offered for those that signed up by Wednesday evening.

The airline has told them if they do not agree to the new contracts by next week, they face termination, according to unions representing pilots and flight attendants.

The pilot contracts, which are broadly in line with those given to new hires since 2018, will result in permanent salary reductions of up to 58%, the Hong Kong Aircrew Officers Association (HKAOA) said on Tuesday.

HKAOA General Secretary Chris Beebe last week told Reuters the decision to force pilots on to lower-paid contracts was "draconian" and "short-sighted".

Staff at many airlines around the world including rival Singapore Airlines Ltd (SI:SIAL) have agreed to temporary pay cuts to help their companies get through the COVID-19 crisis, but the Cathay reduction is permanent.

Cathay Chairman Patrick Healy told reporters last week that the terms of the new contracts were "highly competitive" with those of global peers.

($1 = 7.7500 Hong Kong dollars)

Most Cathay Pacific pilots and cabin crew accept permanent pay cuts
 

Related Articles

Take Advantage of These 3 Top Momentum Stocks
Take Advantage of These 3 Top Momentum Stocks By StockNews - Jun 14, 2021

Benchmark indices have been soaring lately, hitting fresh highs as the U.S. economy continues to recover at an impressive pace. And because analysts expect the Fed to maintain its...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email