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Pilot Dispute Ends
Cathay Pacific Shares May Rise After Pilots End 4-Year Dispute
April 25 (Bloomberg) -- Shares of Cathay Pacific Airways Ltd., Asia's second-largest airline by market value, may gain after its pilots' union accepted a settlement to end a dispute that began in 2001 when 51 of its members were fired.
``That's good news,'' said Francis Lun, general manager of Fulbright Securities in Ltd. in Hong Kong. ``The shares should rise now that the problem has been solved.''
The Hong Kong-based airline, which employs more than 15,000 people, fired the pilots after a disagreement with the union over pay and scheduling. The settlement offers to rehire 49 of the pilots for cargo flights and treat them as new hires, Carolyn Leung, a Cathay spokeswoman, said by phone yesterday.
An unspecified payment will be made to the union for every pilot who doesn't seek re-employment by May 16, she said.
The Sunday Morning Post said yesterday the payout will be equivalent to 10 months' pay. Leung declined to confirm that figure.
The Hong Kong Aircrew Officers Association had recommended members accept the airline's latest settlement offer after failing to get the two-thirds majority needed in February to end the dispute.
Union members have been paying up to HK$25,000 ($3,207) a month into a fund to aid the jobless pilots, pushing union dues up to 5 percent of salaries and leading to a sharp drop in union membership, the English-language newspaper said. The dispute was one of the longest running in aviation industry, according to the newspaper.
Union General-Secretary John Findlay wasn't available for comment.
Cathay Pacific shares closed unchanged at HK$14.70 on April 22. The shares added 0.7 percent last week, compared with a 0.4 percent advance by the benchmark Hang Seng Index.
Cathay Pacific Shares May Rise After Pilots End 4-Year Dispute
April 25 (Bloomberg) -- Shares of Cathay Pacific Airways Ltd., Asia's second-largest airline by market value, may gain after its pilots' union accepted a settlement to end a dispute that began in 2001 when 51 of its members were fired.
``That's good news,'' said Francis Lun, general manager of Fulbright Securities in Ltd. in Hong Kong. ``The shares should rise now that the problem has been solved.''
The Hong Kong-based airline, which employs more than 15,000 people, fired the pilots after a disagreement with the union over pay and scheduling. The settlement offers to rehire 49 of the pilots for cargo flights and treat them as new hires, Carolyn Leung, a Cathay spokeswoman, said by phone yesterday.
An unspecified payment will be made to the union for every pilot who doesn't seek re-employment by May 16, she said.
The Sunday Morning Post said yesterday the payout will be equivalent to 10 months' pay. Leung declined to confirm that figure.
The Hong Kong Aircrew Officers Association had recommended members accept the airline's latest settlement offer after failing to get the two-thirds majority needed in February to end the dispute.
Union members have been paying up to HK$25,000 ($3,207) a month into a fund to aid the jobless pilots, pushing union dues up to 5 percent of salaries and leading to a sharp drop in union membership, the English-language newspaper said. The dispute was one of the longest running in aviation industry, according to the newspaper.
Union General-Secretary John Findlay wasn't available for comment.
Cathay Pacific shares closed unchanged at HK$14.70 on April 22. The shares added 0.7 percent last week, compared with a 0.4 percent advance by the benchmark Hang Seng Index.
