From left: Liza Ng, Cathay Pacific general manager of cabin crew; Melody Luk Wai-ling, chief labour officer of the Labour Department; and Cathay Pacific Flight Attendants' Union Chairwoman Dora Lai Yuk-sim shake hands after the union and the airline reached a deal on working arrangements at the Labour Department on Thursday. Parker Zheng / China Daily

Both sides talked through the night, agreement inked early on Thursday

Cathay Pacific Airlines and the company's unionized flight attendants have reached an agreement on working arrangements on Thursday, following two days of talks under the aegis of the Labor Department. The agreement avoids a threatened industrial action by the flight attendants.

The employees had threatened that the action could escalate into a full scale strike. The union had threatened limited service on board Cathay flights as early as the week between Christmas and New Year.

The two sides met through the night on Wednesday, winding up early on Thursday morning. The airline will go ahead with its trial program, posting foreign based flight attendants on some international flights. But Cathay has promised that the so-called "cross base flying scheme" will not deny Hong Kong-based crews' the right to fly those routes and crews based outside Hong Kong will not exceed 15 percent of total cabin crew staffing.

Outport-based crews will be permitted to serve only on board routes between outport bases. This question will be reviewed in two years.

Additionally, the company and the union jointly agreed on changes to some lifestyle issues deemed important to cabin crew. Regarding late night flights and specific patterns, the airline will implement some new initiatives including service flow and enhanced rest times.

Dora Lai, chairwoman of the Cathay Pacific Flight Attendants' Union, said management promised to improve conditions on night shifts. As one example, she said, crews on the night flight from Hong Kong to Singapore will no longer be required to come back to Hong Kong immediately. They will be permitted to stay for one night to rest and will receive a HK$500 subsidy.

In return, the union agreed to withdraw its threat to take industrial action.

General Manager of Cabin Crew of the airline Liza Ng said, "The agreement we reached today addresses issues important to the company, the passengers, and the crews," adding "both sides considered deeply different suggestions offered by each other and the final results make both sides satisfied".

Ng also thanked the Labor Department for its assistance. She added this is not a "compromise", the airline will continue to listen to the views from the staff about flight arrangements in the future.

"This is the best possible outcome for our customers. They can now look forward to their holiday travel plans with confidence," Chief Executive of the airline John Slosar said.

The Labour Department expressed satisfaction that both sides finally reached agreement.

However, the company has not increased its offer of a 2 percent pay hike next year. The union is demanding 5 percent.

The threat of industrial action came after the company stood firm with its offer, though the union said it would be willing to negotiate better working conditions in exchange for a lower raise.

It had threatened limited service on board Cathay flights, escalating to a work-to-rule, including suspension of meal service, and finally a full scale strike if settlement was not reached.

The airline pointed out it had a deficit of HK$900 million this year and salary adjustments must consider the industry's operating situation and the economic atmosphere.

The union has about 6,000 members, accounting for 70 percent of the airline's flights attendants.

At the end of last year, the union called for an 8 percent pay rise in 2012 to counter the high inflation. However, under the pressure of strike, the management eventually gave 5 per cent increase.

fanfeifei@chinadailyhk.com

(HK Edition 12/21/2012 page1)