Cathay Pacific Welcomes Accord with Cabin Crew and Ground Staff Unions on 2015 Salary Increase, Disappointed with Action by Pilot Union

Cathay Pacific welcomes the accord reached with the Flight Attendants Union (FAU) and Local Staff Union (LSU) on the pay increment for eligible Hong Kong-based cabin crew and ground staff for the coming year, in addition to a number of other items of mutual interest.

The airline announced earlier today that more than 90% of Hong Kong ground staff and cabin crew will receive a pay increase averaging 4.5% in 2015, while senior staff will receive an increment ranging from 3.9% to 4.4%. It will also pay a discretionary year-end bonus, equivalent to one month's salary, to all eligible Hong Kong employees for 2014.

Cathay Pacific Director Corporate Affairs James Tong said: "We conduct amicable and sensible negotiations with 24 unions for flight crew, cabin crew and ground staff worldwide and we are in dispute with only one - the pilots union in Hong Kong."

Cathay Pacific is disappointed at the decision made by the General Committee of the Hong Kong Aircrew Officers' Association (HKAOA) to ask its members to begin Contract Compliance, a form of work-to-rule, which the airline believes is unnecessary.

Cathay Pacific would like to reassure passengers that it will do everything in its power to operate all flights as scheduled.

Cathay Pacific commenced pay talks with the HKAOA in January 2014 with the intention to reach an agreement on a three-year package early in the year. Regrettably an offer that the airline thought had been agreed in August, with the recommendation of the General Committee of the HKAOA, was rejected by the smallest of margins by the HKAOA membership.

In late November, in an effort to bring closure for 2014, Cathay Pacific informed its flight crew that it would give a pay rise of 4% to cover the period from 1 January 2014 to 30 April 2015. This pay rise has taken prevailing market levels into consideration and comes on top of the average annual pilot pay scale increment of 2% and the 13th month discretionary bonus for 2014.

Cathay Pacific Director Flight Operations Richard Hall explained "This pay rise recognises the flight crew for their continued contribution to the company's success. We hope to reconvene talks with the HKAOA in 2015 to discuss pay from 1 May 2015 onwards and other outstanding issues, but in a manner that ensures we are able to reach long-term agreements in a reasonable timeframe. We are always open to further dialogue with the HKAOA if the union shows sincerity to engage in meaningful discussions."