Estonian Air Terminates Collective Agreement (5)

Published: 10.08.2012 15:53

Photo: Postimees/Scanpix

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Estonian Air has terminated a collective agreement with its employees, which CEO Tero Taskila said was dated and did not take the current market situation into account, reported Postimees.

The Airline Pilots Association has been negotiating the terms of a collective agreement with Estonian Air for a year without result. “We have fundamental differences [...] We have not made any steps forward in a year's time,” said association chairman Rauno Menning.

“We want to make a compromise where both sides make concessions. They have presented us with an ultimatum: take it or leave it, this is the market situation. And we won't accept that,” Menning said.

The financially struggling national carrier aims to boost worker efficiency by 15 percent. In other words, pilots need to work more for the same salaries, according to Postimees. The disagreements include but are not limited to salaries and vacation time, the last having been cut significantly by Estonian Air.

“Estonian Air should be embarassed to even present such [demands],” said Menning, who will continue negotiating next Tuesday.

Taskila said that the market situation is tough internationally for commercial airlines. Nevertheless, the company aims to start making a profit by the end of next year.

Estonian Air's loss in the first half of the year amounted to 14.9 million euros, despite the company's turnover growing by 24 protsent to 43.9 million euros. Taskila blamed increasing fuel prices, decreasing productivity, cheaper airline fares due to competition, the transition to new airplanes and the costly implementation of a new strategy.

Taskila said the second half of the year would be better and that the company would try to avoid the need for additional government subsidies. He called Estonian Air one of the fastest growing airlines in Europe and said one in two travelers in Tallinn Airport fly with the carrier.

 

Ott Tammik

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Comments (5)

  • avatar

    knut_albers

    10.08.2012 16:31

    Sorry pilots, but we, the taxpayers as your owners, can't pay more than we have to you. The other option would be of course to outsource the pilots through a third party vendor, but that would mean even lower wages to you (because the third party wants to get some cash as well). And it is not like that pilots are living on the brink of the poverty line, but the poor is financing EA's looses to rescue your jobs as well. My three sentences.

  • ameeriklane

    10.08.2012 16:40

    From their 2011 annual report: "Non-crew staff costs increased by 28,8%, primarily because the salary reductions taken in 2008 during the financial crisis were removed in February 2011."

  • Mart Mang

    10.08.2012 18:23

    I guess I'll be taking the ferry the next time I come to Estonia. The last time, they made me wait in Stockholm all day, then squeezed me on a flight that evening, in front of a drunk Russian speaking gentleman. Good luck, you're gonna need it...

  • Daan

    13.08.2012 13:58

    If u pay peanuts you get Monkeys, and that’s the last person I want to be the “Captain” of my Estonian Air flight. The pilot is the “heart” of the flight. It’s exceptional that another reason than a human failure is the cause of a plane accident. A good evaluation of the Estonian Air cost structure might be a better step forward. Its easy to call “Estonian Air one of the fastest growing airlines in Europe”, knowing your talking about a very small carrier where every new action must result in growing. But growing doesn’t mean better financial results/ structures. Cutting salaries of the pilots (and crew) will only result in a new lost of talent. A normal co- pilot starters month salary on the market is about 3.000 € (all before taxes), a pilot 4.000 and an experienced commander about 7.000 €. Flying hours are limited at 900 a year. But don’t forget, he has to prepare his flight (about 1 ½ hour) and make a report about every flight. Every half a year the pilot must pass an exam to keep his licence. Estonian Air as National Carrier, with or without State support - cfr Minister of Economic Affairs and Communications Juhan Parts - must rethink its position on the market. It’s not because “one in two travellers in Tallinn Airport fly with the carrier”, Estonian Air can survive on its own and ignoring the reality of today’s market. I know, the past “adventure” can hardly be called successful, but let Taskila now start to prove he is worth his royal salary. But keep your hand out of the pocket of the talented that flies and - in general - take care of “your” planes and our passengers’ safety and lives. If not, the other 50% might grow very fast.

  • Too small

    13.08.2012 15:40

    Long term I see only only one solution: 1. Liquidate EA totally. 2. Sign a merger agreement between the airports of Vantaa and Tallinn 3. Make Tallinn a terminal of Vantaa with frequent shuttle flights between the "terminals".