Vietnam Airlines' pilots demand pay rise

More than 100 employees of Vietnam Airlines (VNA) have sought leave from the national carrier, prior to a go-slow strike demanding better payment, but their demand has not been accepted.
More than 100 employees of Vietnam Airlines (VNA) have sought leave fromthe national carrier, prior to a go-slow strike demanding betterpayment, but their demand has not been accepted.

Theincident occurred after 117 pilots filed for sick leave during theupcoming Lunar New Year holiday, while more than 30 pilots from theAirbus fleet wanted to resign.

Anticipating the seriousnessof the problem, VNA asked the Minister of Transport Dinh La Thang tointervene, who then directed the Civil Aviation Authority of Viet Nam(CAAV) to decline all leave applications from VNA employees temporarilyin an effort to ensure the smooth running of the airline's on-goingoperations.

Thang has also requested the national carrierto evaluate and raise the income of these employees during the firstquarter of this year.

Speaking at a press conference inHanoi on January 12, Vietnam Airlines CEO, Pham Ngoc Minh, said thenumber of pilots, who apply for sick leave, had doubled during the 2013to 2014 period.

However, only 10 pilots had produced a doctor's certificate to justify their health conditions.

"Thepilots' applying for sick leave and the resignations submitted by morethan 30 pilots are unusual and serious. It not only directly impacts theVNA's operations and business, but also negatively influences otherpilots and staff members," said Minh.

The disparity betweenthe salaries of pilots hired domestically and those hired from abroadby VNA is being seen as the main cause for discontent. VNA currentlypays its foreign pilots 10,000 USD to 12,000 USD per month.

In2008, VNA had formulated a roadmap for reforming the salary structureof the whole corporation, under which the domestic pilots' income wouldappreciate regularly and be capped when it touched 80 percent of theforeign pilots' pay.

"At this time, the domestic pilots'income is 75 percent of the foreign pilots'. However, I need to stressthat domestic pilots' income is pre-tax income. Meanwhile, the foreignpilots pay also constitutes the payment made to pilot management firms,which have signed contracts with VNA," Minh explained.

Thegap in the salaries of domestic and foreign pilots has raised questionsamong the former as to why the disparity should exist in the firstplace, considering that both are fulfilling the same role and serving inthe same capacity?

As a result, a number of pilots havesought to resign and seek employment at other airlines, which is beingseen as competition among airlines in Vietnam.

A VNA pilot,who wanted to remain anonymous, told Vietnam News that another firm hadoffered him a salary that was much higher than what the VNA is payinghim.

"The offer really surprised me, but I still refused because I thought my job with VNA is more secure," the pilot stated.

Commentingon Vietjet Air, which is said to be poaching staff from other airlines,including VNA, Minh said he did not think that VNA's go-slow strike hasbeen caused by Vietjet Air, but that the issue can only sorted out byresolving the pilots' difficulties thoroughly.

VNA also revealed during the press conference on January 12 that it has reformed its salary structure five times since 2008.

Asa result, pilots' salaries have appreciated regularly, with the latesthike having taken place in December, 2014. For example, the salary for aB777-A330 captain will be raised to 177 million VND (8,310 USD) by July2015 from 132 million VND in September 2014; while an A321 captain willbe paid 158.8 million VND (7,420 USD) in July 2015, up from 115 millionVND (5,400 USD) in September 2014.

Although the pilots'salaries have been raised regularly, they are still lower than whatother Asian airlines pay, including Turkish Airlines, Asiana Airlinesand Jestar Airlines, where the aforementioned employees are paid 11,970USD, 10,500 USD and 12,630 USD per month, respectively.

Goingforward, VNA will collaborate with the Ministry of Transport toevaluate its salary structure and clarify regulations in order totighten its management. As for the pilots, the VNA has set a freshtarget for enrolling and training pilots, so as to boost the percentageof Vietnamese pilots in its staff. In 2010, foreign pilots made up forabout of the total pilots employed by VNA, which slid to 22 percent in2014.

The loss of talent is a problem faced not only byVNA, but many other companies in Vietnam, where employees want to chooseemployers, based not only on a better pay packet, but also a goodworking environment.-VNA

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