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Comair cabin crew to strike over salaries

Comair cabin crew to strike over salaries

Photo by Duane Daws

26th January 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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A strike is looming at commercial airline Comair, affiliate of Kulula and British Airways airlines, after salary negotiations with its cabin crew failed.

Negotiations between Solidarity and Comair started in September 2014, and, in December, the union referred a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA), after the parties failed to reach an agreement.

The CCMA compelled Comair to continue negotiations with Solidarity and the parties resumed negotiations during a conciliation process at the CCMA on January 22.

Solidarity, which demanded an almost 13% increase for its 210 cabin crew members at Comair, said on Saturday that it had been issued with a strike certificate.

In terms of the employer’s latest salary offer, employees would either receive an increase of 7.5% on their total cost package, or an increase of 8% on condition that overtime would only be calculated after 125 hours a month.

“This would mean that employees would have to fund their own increase by forfeiting on overtime pay,” Solidarity professional industry head Johan Botha said in a statement.

The union noted that the dispute was declared at the CCMA owing to the fact that cabin crew salaries had, since 2011, been calculated on their basic salary only and not on their total cost package.

“Cabin crew’s basic salary only constitutes 53% of their total cost package. In 2012, a three-year salary agreement was signed by the parties, in terms of which cabin crew would not receive any increase in that year.

“The 2012 agreement was reached at a time when Comair was battling financially. Our members, however, agreed to accept low increases to accommodate their employer. During the same period though, top management nevertheless received increases of 12.4% on their total cost package,” Botha said.

He added that Comair’s financial position has since strengthened and the company was now in a position to reward employees for their loyalty by granting them a “favourable increase.”

For the year ended December 31, 2014, Comair’s comprehensive income increased by 16% to R265-million, while earnings a share were further improved through the buyback of 10% of issued shares transacted in  November and December 2013, resulting in a 24% increase in earnings a share to 58c.

Turnover grew by 17%, with one-quarter of the growth attributable to an increase in passenger numbers and the remainder to improved yields.

Further, the company has also significantly invested in new aeroplanes, making predelivery payments of R152-million, prior to year-end, towards the delivery of four Boeing 737-800’s in late 2015 and early 2016, as well as deposits of R102-million towards the purchase of eight Boeing 737-8 Max’s for delivery from 2019 to 2021.

Comair said in its financial results that it remained confident that there was scope for further profit growth. “The ongoing upgrades to the fleet will continue to improve operating efficiency, while at the same time enhancing the revenue potential per flight.”

Meanwhile, Botha stated that Solidarity believed its members were now entitled to a firm increase, “to enable them to catch up with the backlog built up over the past three years. By our calculations, our members should receive an increase of at least 12.3% on their total cost package to compensate for the backlog,” he noted.

Solidarity was party to a cooperation agreement with Comair in terms of which negotiations on behalf of members would be undertaken collectively.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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