16 November 2009

Human cost of aviation crisis highlighted

Unions representing hundreds of thousands of aviation workers have called on airlines and industry bodies to tackle the effects of the global financial crisis on the industry.

Civil aviation trade union members of the International Transport Workers Federation (ITF) set out a strategy to reduce the human effects of the downturn, which is hitting cabin crew, pilots and ground-based personnel around the world.

A three day meeting in London concluded that the aviation sector is going through structural change and the current crisis is not simply yet another cyclical dip.

This means a drive for permanent restructuring by companies with the low cost carrier model as a key driver, and an increasing emphasis on regional and global networks.

This is happening against backdrop of a weak global economy and financial markets; intense competition from a well-developed budget sector; and a strong drive by governments towards deregulation and ‘open skies’.

Delegates also heard how labour cost competition with low cost carriers is "effectively pointless" as their operational costs remain significantly lower than full service carriers due to a leaner mode of operation throughout.

Full service airlines which cut jobs and wages in response to low cost competition are not gaining a competitive advantage, the ITF claimed.

"What they are doing though is hurting workers and potentially jeopardising good industrial relations," a statement said.

"Full service carriers should be playing to their strengths in an industry that has room for them and for the vibrant low cost carrier market - where profitable airlines such as Southwest have proved that fares can be kept low at the same time as staff can be well treated and listened to by their employers."

The potential effect cost cutting has on health and safety - with aircraft turnaround times being increasingly reduced - was also highlighted.

Unions came out firmly against greater deregulation and privatisation of what used to be a much more stable and well-regulated global industry.

ITF civil aviation secretary Gabriel Mocho said: "Our immediate priorities now are to highlight the human cost of the crisis to aviation workers, including on their health and safety; explain that just cutting labour costs isn’t helping good airlines compete better, and that deregulation is damaging this industry.

"Lastly, and maybe most importantly, we have to repeat our call for everyone involved - governments, employers, workers and bodies like ICAO, IATA and the ILO - to join in a dialogue on how we can preserve what’s good about this industry without hitting those within it even harder than they already have been.

"We particularly have to wake up governments to what is going on, and remind them that it’s not just banks that need saving."

by Phil Davies