Sunday, May 21, 2017

Croatia Airlines crew threaten with strike


The union representing Croatia Airlines' pilots, cabin crew and mechanics, ORCA, has begun preparations to launch industrial action after mediation talks with the company's management failed on Friday over an impasse concerning a new collective bargaining agreement. The previous agreement expired on December 31, 2016 with negotiations taking place since. "All conditions to begin talks over the terms of the new collective agreement were met at the beginning of March and, over the past two months, we have been engaged in a number of meetings with the management which have failed to deliver any results that would improve workers' rights. As a result, we began mediation talks which have, unfortunately, been unsuccessful", ORCA said. A final decision on whether Croatia Airlines' employees will go on strike will be made in late May or early June, the union added.

Croatia Airlines' CEO, Krešimir Kučko, said that the management proposed to extend the terms of the previous collective agreement until the end of 2017 and for negotiations over a new deal to resume after the busy summer season, during which the airline generates the bulk of its profit and revenue. Mr Kučko noted that ORCA came to the negotiating table with 150 demands, which would set the company back 6.7 million euros annually. "All of the demands are of a financial nature. If we, for example, reduce their work hours, it would generate losses for the company because we would have to hire more people. I think their objective was for the mediation talks to fail as soon as possible so they could pressure us into doing something", Croatia Airlines' CEO said.

Croatia Airlines’ staff were involved in their longest-running industrial dispute four years ago. In May 2013, unions staged an eight-day walkout, paralysing the airline and its operations. Staff first held a warning strike, which lasted twelve hours, after which they called for an immediate work stoppage. In 2015, pilots, cabin crew and mechanics also threatened with industrial action but did not follow through with their plans. A potential strike now would come at a delicate time for the airline, as it faces increased competition across the country but also continues to improve its finances and results. Furthermore, the Croatian government is currently in the process of deciding whether to extend the term of airline's existing management team or select a new leadership for the company.

73 comments:

  1. Let's hope it won't be a repeat fron a couple of years ago.

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    1. Personally, despite its failure, the strike of 2013 was quite profitable for me; it gave me Maozetungian impulse to move forward. Might help someone else this time.

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  2. If there is a strike now it could really hurt OU's finances. They can't afford it. Actually, a two day strike could prove to be fatal for the airline in such a precarious position.

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    1. Especially if it happens during the summer season.

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    2. Last time they also went on strike during the summer and it dragged on for over a week.

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    3. No one went bust because of a crew strike.

      It would be bad for business for sure, but not fatal.

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    4. Well, it would be a problem because they would need to spend more money from the sale of the remaining LHR slots. It would bring them closer to the Armagedon.

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  3. Increase the salaries of the staff, they are the backbone of any organisation. Cut unprofitable routes just like JU did. It was great to sell the LHR slots and temporarily lease a small aircraft and open new regional routes.

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    1. But according to the CEO all routes are unprofitable during the winter season. So what's the solution there?

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    2. LOL Statements like that prove why the airline and every other state owned company must be privatized. The staff does NOT own the airline, the taxpayers do. And they have been covering its loses for way too long.

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  4. Why didn't they just extend the existing collective agreement while they negotiate a new ome?

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    1. Because MGMT thinks it's good idea to work without CBA and so far has been proven right.

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  5. Shame. This could be very costly.

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  6. I'm not the same guy, but...May 21, 2017 at 9:30 AM

    Bravo Hrvatska! :D

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  7. Kucko & co must go. I hope the government realizes this.

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    1. A lot of the staff needs to go too.

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    2. A lot of the staff has already gone.

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    3. Clearly the bad apples who see the airline as their personal property need to go!

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    4. Who are those bad apples? Pilots and mechanics? Most of those who left are in the one of these categories.

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    5. Bad apple is everyone with a public sector worker mentality who sees the company as his own property to milk for all the money possible.
      And who thinks that it is his God given right to be as unproductive as he wants and that the tax payers have a God given obligation to cover the loses and pay for his lifestyle.

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    6. Well I'd guess it's just you being jealous that I have 12 weeks annual leave but no amount of commenting here, there & everywhere can change that.

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    7. Since I am the one paying for it I am rooting for the airline to privatized. And then you will see exactly how much your work is worth in the real market.

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    8. How so? Where is that real market of yours that would pay me less for my work while making me work more?

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    9. Everywhere! It is called privatization. And that is why you are scared shitΙess of it.

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    10. Not at all, my dear friend. Any privatization of CTN (which is BTW, extremely improbable) can not and will not change a dot in my contract.

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    11. Actually it will change everything in everyone's contract! That is how privatizations work the world over. And that why you dread it.

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    12. Nope, my dear sir/madam. After thirteen happy years, I swapped the comfort of state-owned Croatia Airlines for tough life in multinational LoCo. Guess what: my pay doubled, my annual leave tripled, my job is easier here as company supports me far better both en-route and off-duty, crew food and transportation to work are provided and paid by the company, profit share is regular occurrence. When I was working for CTN, I strongly suspected that good folks chiding us for being unproductive & lazy are just lying b'stards with agenda. Now I know it for sure.

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  8. Only in ex-Yu is company staff determined to sink the company they work for.

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    1. Erm... have you been following the news on Alitalia lately?

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  9. If they start a strike in June they are idiots.

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    1. Well, if they started in February the management would not care. In June they will care.

      From the strikers' point of view, they should start when they have the biggest chances to succeed. It's legitimate.

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    2. In the majestic Republic of Croatia, strike regarding regarding labour negotiation is only legal when state entity named "Gospodarsko-socijalno Vijeće" certifies bargaining process as failed. That's what happened here. One can only strike with the goverment's approval.

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  10. This is so unfair. Croatia is a regional leader.

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    1. That's true. Croatia is the biggest airline player in the Balkan. Go... and Franjo Tuđman airport looks great...

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    2. OMG! The OU staff cares only about their pay instead of being happy to work for the regional leader flying from beautiful Franjo Tuđžman airport! How about firing them all and replacing 'em with the concerned commentators of ExYu, T6, Skyscrapercity et al? Is it a viable business proposition?

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  11. Kucko won't give in easy. Remember that the last strike went for 8 days.

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    1. I'd venture a guess the length of the strike and its eventual failure had more to do with the then prime minister's attitude towards the company and the workers than anything CEO did or failed to do. Mr Milanovic publicly said "Sink the company, I don't care" and very thoughtfully provided liquidity injection once strike was broken. That options is not necessary available to current govt.

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  12. If they go on strike they will be left with two CRJs in operational state as they are operated by foreign crew. Still, they would lose millions from.a single day of strike. Just imagine how much it would cost to rebook all those stranded passengers, especially on the coast. Disaster.

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    1. No. The effect on the flights would be quite small as the government of the RoC, completely accidentally also an owner of OU, has issued order about flight that need to be flown during strike as they are of special state interest. During the strike of 2013. less than a third of flights were cancelled. Everything is lawful and institutions are doing their job.

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    2. Plus they have TradAir 2 F100 and 1 A320 on permanent stand-by, just in case

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    3. 2 CRJ
      At least 3 A320/A319 must fly by law
      + Trade Air (I don't know how many planes are free in this moment)

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  13. Problem je kada exYu napise da popravljaju ekonomsko stanje sto jednostavno nije tacno vec su stucali pare od slotova jednostavno
    ne zaradjuju dovoljno novca u sezoni. ExYu avijacija uskoro nece postojati na ovaj nacin. Letecete samo LCC kompanijama.

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    1. Što je u tome loše?

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    2. Pitaj Makedonce.

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    3. Pitao. Kažu da im je super, da je plat/ća u Wizzairu puno veća nego u Avioimpexu.

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    4. Ne lupetaj makedonski piloti sad mogu da lete po indiji, australiji i americi.

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    5. A što nemogu u Wizzairu pa im iz Skopja lete Hrvati? Wizz prima non-type-rated ekipu sa EU, makedonskim ili ukrajinskim dozvolama.

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  14. OU staff - 900 (2015) Fleet: 14
    JU staff - 2450 (2015) Fleet: 21
    W6 staff - approx. 1100 (2017) Fleet: 86
    AZ staff - approx. 12000 (2017) Fleet: 369

    As you can see the numbers are very different. But I think they might just have a surplus of staff really.

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    1. JU also has its ground handling division, catering and maintenance.

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    2. Alitalia fleet is not 369 , but 122 according to Alitalia

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    3. JU has just line maintenance with just few mechanics. Croatia in same time in much less number of staff has full maintenance (C and D check) with 3 hangars.

      JU has much more staff than needed. Several times more than other airlines in region.

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    4. JU has departments which cater for the entire Etihad group. In its call centre there are over 100 people because they take calls for Etihad, Alitalia, Etihad regional etc.

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    5. The ratio staff and fleet of Air Serbia is pretty high. Either financial losses or very low wages.

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    6. According to Wikipedia in 2016 Aegean Airlines had 62 aircraft, transported 12.5 million passengers and grossed over one billion Euros.
      All that with just 2,334 employees!

      ASL is clearly overstaffed and so is every other state owned airline. Not just in our region but everywhere in the world.

      source:
      https://en.wikipedia.org/wiki/Aegean_Airlines

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    7. Where did you get the number from Wizz? Quote below is from their 13 anniversary news...

      In the 12 months to 30 April 2017, over 24 million customers took the opportunity to travel with WIZZ, enjoying the low fares, easy booking system and excellent on-board service. Day in day out, almost 3,300 aviation professionals of 42 different nationalities deliver superior onboard service and WIZZ business supports over 17,000 jobs** in associated industries across the network.

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    8. Croatian Airlines is a state owned company but it's not the the case you were mentioning.

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  15. According to Wikipedia in 2016 Aegean Airlines had 62 aircraft, transported 12.5 million passengers and grossed over one billion Euros.
    All that with just 2,334 employees!

    ASL is clearly overstaffed and so is every other state owned airline. Not just in our region but everywhere in the world.

    source:
    https://en.wikipedia.org/wiki/Aegean_Airlines

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  16. I think if government makes the current management redundant, I am nearly 100% sure there will be no strike. This due to the current CEO and his arrogance look in the past when he made staff redundant. He says one thing to the staff and he does another. He is a man with no morals and professional integrity period.
    There is a time to come and his time has arrived to go .in airline terminology his STD has arrived.

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    1. What I understand is government is looking in this.
      Inside information has told that he's on his way out

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  17. very nice photo of new CRJ1000, in combined air nostrum/croatia livery, taking-off in front of new ZAG terminal, with KoreanAir, Qatar, Lufthansa and Croatia on airbridges behind, on avioradar.hr

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    Replies
    1. http://avioradar.hr/index.php/hrvatska/547-drugi-unajmljeni-crj-1000-poletio-je-za-croatia-airlines

      Fantastic!!!!!

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    2. Bravo HR! ;) Lets keep the tradition of supporting airports.

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  18. OT: Hainan is interested in purchasing Alitalia. If that happens what could be their strategy if they get BEG concession?

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    1. I hope they buy JU from EY too. The Chinese are masters now.

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    2. Hopefully not use it as a feeder for Alitalia's FCO hub.

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    3. Hainan cannot "purchase" Alitalia, it can only become minority (49 %) shareholder, according to EU regulation. And the same goes for JU, if Serbia wants to proceed with its EU membership plans and talks.

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    4. Hainan wants BEG. Hainan wants Aegean. Hainan wants AZ...

      Maybe Hainan should decide what it wants.

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    5. Hainan bought HHN Airport in Germany and now applied for PDV too. Its really crazy mate.

      Delete

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