Industrial unrest is spreading across Asia-Pacific as the region's carriers react to a worrying economic slowdown and stiff competition, compounded by the global hike in fuel costs.
At presstime, All Nippon Airways was at loggerheads with its cabin crew unions after wage negotiations broke down: a 24-hour strike in late November grounded 374 domestic flights.
In Manila, Philippine Airlines was also facing a pilots strike after negotiations on a new collective bargaining agreement reached stalemate. The confrontation with cockpit crew comes on top of a similar dispute with other staff which has yet to be settled.
And in Thailand, Thai Airways International suspended plans to invest in a new national cargo airline after protests and the threat of action from staff at the carrier's freight division (see story left).
The region's operators are urgently reassessing cost-cutting efforts, as they grapple with a toughening economic environment, further complicated by higher fuel prices. Virtually all of Asia's carriers indicate they have seen a softening in the market against expectations when they set budgets for their current years. Analysts are blaming increased competition for Malaysia Airlines' 11.1 per cent fall in net profits to US$54.3 million, while the carrier pointed to higher fuel prices and a localised outbreak of cholera for its 3 per cent rise in pre-tax profits to US$61.3 million.
Qantas is also struggling:after raising its 1996-97 cost-cutting target from US$180 million to US$260 million earlier this year, the carrier has been forced to raise the target again to US$340 million.
Chairman Gary Pemberton says a general weakness in loads and yields coupled with higher fuel costs and the stronger Australian dollar will hit profits in the current year.
The carrier's management has also flagged its intentions to cut staff, but has so far refused to disclose a timetable or the number of redundancies. Such a move will almost certainly cause industrial unrest at Qantas.
The strike by ANA cabin crew was the carrier's first major industrial dispute in nearly seven years, with the walkout affecting 70 per cent of its domestic flights. No international services were hit.
Japan's two other major operators, Japan Airlines and Japan Air System, faced a similar stoppage but strikes were averted after last-minute agreements with unions.
ANA's problems revolve around a new wage system for pilots introduced under a corporate restructuring plan. After the strike the airline said it 'remains resolute in the necessity of this change and will continue its efforts towards reaching the understanding of its pilots on this issue.'
PAL's management threatened to fire pilots if they took strike action. The airline's 630 cockpit crew want a 30 per cent pay rise, increased retirement pay, revisions of work rules on long-haul flights, and a 'top of the line car' for each pilot, according to the airline. The Airline Pilots Association of the Philippines could not be contacted for comment.
The disagreement, which appeared set to continue through December, follows a dispute with ground staff in November which sparked a three-day strike, causing the cancellation of 30 international and 100 domestic flights.
The Philippines Labour Department intervened to end the strike - but not the dispute. Representatives of management and unions have agreed to hold further talks aimed at finding a solution.
Source: Airline Business
