CYPRUS Airways (CY) pilots yesterday called off strike action threatened from midnight tomorrow after reaching an agreement to enter negotiations with management.
On Monday, the pilots’ union PASIPY gave over their demands to chairman Lazaros Savvides and the board, and were waiting for a response today.
PASIPY chairman Polis Economou said the company’s response had been positive and that negotiations would be entered into. This satisfied the union enough to call off the proposed 48-hour strike that would have affected 80 flights and 12,000 passengers.
“The union executive board has decided to suspend strike measures after receiving in writing an agreement in principle to give more back to the pilots,” Economou told reporters.
The pilots have been horse-trading with management for months now on the contents of a rescue package for the airline. They say they gave unprecedented concessions to help the company back on its feet but insisted the concessions they gave, including wage and benefits cuts, should not be permanent.
In May last year, the European Commission authorised a grant of rescue aid, which took the form of a government-backed loan of £30 million.
The decision included an undertaking by the Cypriot authorities to come up with a restructuring plan, which is now being examined by the Commission.
But pilots say that while cutbacks under the plan have been tough on staff, no moves have been made to increase the revenue of the airline. They wanted to thrash out the issues with the company but said they are being ignored.
The union eventually called for the strike last week when it seemed a resolution to the outstanding problems was nowhere in sight.
Pilots were seeking assurances that the 11 aircraft operated by CY would remain within the company and not be sold or leased off, which would reduce the airline’s capacity and revenue.
They also want a guarantee that wage levels will return to 2004 pre-plan levels by 2010 and that there will be no more cuts in benefits.
Economou said the company had been very positive during yesterday’s meeting and that consultation would begin to thrash out the details.
“I believe the climate has changed and a solution will be found,” he said.
