Imbert gives CAL pilots a 4 per cent increase

  • Oct, Thu, 2024

Senior Reporter

bavita.gopaulchan@guardian.co.tt

Finance Minister Colm Imbert yesterday gave Caribbean Airlines the go-ahead to accept the T&T Airline Pilots’ Association’s (TTALPA) request for a four per cent salary increase.

The four per cent increase will cover two collective bargaining periods—September 2015-August 2020 and September 2020-August 2023.

The announcement was made in a release last evening, hours after Imbert had issued a previous media release detailing the situation with the negotiations between CAL and TTALPA and promising he would provide support to CAL so the dispute could be settled.

That earlier release also came after TTALPA staged yet another silent protest outside Imbert’s Port-of-Spain offices.

In a statement in response to the protest, Imbert acknowledged that despite air transport being designated an essential service, pilots had voiced their concerns over their compensation by way of the demonstration. He noted that an injunction issued by the Industrial Court in August 2023 prohibits TTALPA from engaging in industrial action and that he expected the association and its members to comply.

Imbert reaffirmed Government’s commitment to “fair, equitable and reasonable collective agreements in the best interest of all stakeholders, while also considering the country’s economic realities, particularly Caribbean Airlines’ current financial condition.”

“… it is necessary to remind TTALPA, the pilots, and the public at large, that while CAL may be heading for an operational profit, which is commendable, it is a fact that over the last nine years, the Ministry of Finance has taken over CAL’s debts and debt servicing obligations. The ministry, therefore, covers a significant portion of CAL’s annual expenses,” Imbert said.

“In the last four years in particular, the Ministry of Finance has provided the airline with billions of dollars in financial support in the aftermath of the COVID-19 pandemic. Further, the Ministry of Finance continues to subsidise the airline to the tune of hundreds of millions of dollars per year.”

Imbert noted that just two months ago, the ministry paid for a spare engine for CAL’s Max-8 fleet, which cost US$18 million (TT$122 million) and was an unbudgeted expenditure. He said the ministry had to scramble to source the funding but did so because of CAL’s importance to the country.

Regarding the wage negotiations, Imbert said CAL had advised that, to date, the airline and TTALPA had agreed on and closed off 50 non-cost-related matters.

“It is noteworthy that CAL pilots, including starting and senior members, have received consistent increases in compensation over the years. CAL has advised the minister that pilots are compensated through competitive salaries, allowances, and per diem rates that place them among the highest-earning professionals in the region,” Imbert said.

“Since 2022, the airline has onboarded 90 pilots (54 recalls, eight rehires on fixed-term contracts not attaining the age of 65, and 28 new hires, including internal candidates). Overall, CAL has advised that pilot salaries account for thirty-three per cent (33 per cent) of the airline’s payroll costs, while the pilot body comprises thirteen per cent (13 per cent) of the total workforce.”

He provided the following breakdown of pilots’ salaries:

• Starting Pilot Annual Salary: TT$273,819 (TT$22,818 per month)

• Senior Pilot Annual Salary: TTD 1,137,123 (TT$94,760 per month)

• Average Monthly Allowances and Per Diem, paid in addition to Salary: US$6,300 or TT$42,714 per month Average per cent Increase in Pilot Salaries (2015-Present): The average increase between 2015 and 2024 would be 23.4 per cent from a salary in 2015 to 2024.

Imbert emphasised that CAL’s pilot compensation was competitive and contributes to a low attrition rate. However, he admitted there were complex issues hindering progress, including a TTALPA request for severance and damages from contract pilots over 60 years of age, who, are not willing to leave the company upon reaching the age of 60, despite specific contract clauses.

During the earlier protest outside Imbert’s office, TTALPA trustee Keith Dowdy emphasised that after nine years, the pilots were willing to settle for four per cent, the same offer given to public servants by Government.

The union initially rejected CAL’s 7.5 per cent wage increase offer.

TTALPA “grateful” Minister intervened

Responding to questions from Guardian Media following the announcement of the offer by the Finance Ministry, TTALPA said it also “notes” the four per cent offer for the other bargaining period – 2020 to 2023 and will consult with its members before adopting a position on the offer.

The pilots’ protests started this month with a silent demonstration at the Piarco International Airport, followed by the pilots delivering a letter to Imbert.

The pilots are currently operating on an expired nine-year collective agreement and salary.

The post Imbert gives CAL pilots a 4 per cent increase first appeared on CNC3.