New Research Shows 63% Lower Trust in Cathay Pacific Group after Restructuring

79% Say Making Major Contract Changes with No Consultation with Employees Unfair,
74% Say Cathay Pacific Disrespectful to Pilots and Cabin Crew,
69% Say Cathay Pacific Treated Employees Badly

HKAOA Seeks Greater Consultation, Fairness and Deadline Extension by Cathay Pacific

HONG KONG, Nov. 4, 2020 /PRNewswire/ -- New research commissioned by the Hong Kong Aircrew Officers Association (HKAOA), which represents the 2,200 Hong Kong-based pilots of Cathay Pacific, shows 63% of Hong Kong residents have a lower level of trust in Cathay Pacific after the recent restructuring. The HKAOA research also showed:

• 74% said Cathay Pacific's changes to employment terms disrespectful to employees
• 69% said Cathay Pacific has treated its employees badly
• 66% feel more negative about Cathay Pacific after restructuring
• 97% feel job security is important to creating a positive working environment
• "Despicable/Unscrupulous", "Poor", "Bad" and "Disappointing" were words most frequently used to describe feelings towards Cathay Pacific after its corporate restructuring

(Research data collected by Ipsos (www.ipsos.com) from October 30 – November 1, 2020 and polled 1,001 Hong Kong residents aged 18-55+ via online.)

Cathay Pacific announced redundancies of 5,300 Hong Kong-based employees on 21 October, 2020. Pilots and cabin crew who were not made redundant had between 7 to 14 days to sign an inferior new contract, with pay cuts of up to 58%, or be fired. The deadline for signing is today, Wednesday 4 November. The HKAOA officially sought greater consultation recently for fairer treatment for its membership and an extension of the termination deadline.

The research further highlighted:

• 79% said Cathay Pacific is unfair to make major contract changes with no consultation with employees
• 75% said Cathay Pacific unfair for asking its employees to take permanent salary cut for current business situation
• 72% said Cathay Pacific unfair for asking employees to sign new contracts within seven days
• 71% said Cathay Pacific unfair for asking Hong Kong-based cabin and cockpit crew members to accept 50% lower pay contract or be terminated

HKAOA General Secretary Mr Chris Beebe said today, "It is clear Cathay Pacific's recent behaviour has been seen for exactly what it is: 'bullying, intimidating and disrespectful' of all affected employees. After years of loyal service, thousands of people have seen their careers destroyed and many others face an appalling choice of 'sign or be fired'. This is no way for a responsible company to behave in 2020," said Mr Beebe.

"No meaningful consultation has ever occurred between the HKAOA and the management of Cathay Pacific regarding the recent restructuring. Further, the requirement to sign a new contract in such an unrealistic, very short period is grossly unfair, after which termination is automatic. The lack of consultation, the unfair, 'draconian' (Reuters, 23 October) rushed decision timeline and questions as to whether consent can legitimately be given under these circumstances are of great concern," added Mr Beebe.

The HKAOA has confirmed has that their representatives will meet with representatives of the Cathay Pacific Airways Flight Attendants Union (FAU) later today.

"Cathay Pacific is operating, our pilots are flying the company's aircraft and FAU cabin crew are serving customers. In many cases these employees have been away from home for long periods of time which makes it totally unreasonable to insist on such a fast decision to sign a new contract. They will wish to discuss with their families and friends, which they are unable to do as they are not in Hong Kong. Our request of Cathay Pacific is very simple: show some respect towards your people and integrity in your behaviour. It is clear the people of Hong Kong are deeply concerned regarding your treatment of the men and women who fly for Cathay Pacific. We trust the company will finally do the right thing and consult with its loyal employees regarding their future," concluded Mr Beebe.

About The Hong Kong Aircrew Officers Association

The Hong Kong Aircrew Officers Association is a professional Association that represents the Pilots of Cathay Pacific. Our membership of 2,200+ airline pilots is a strong alliance of dedicated aviation professionals from many nationalities. From 1963, when the Association was first registered as a Trade Union in Hong Kong, to the present day, the HKAOA continues to be the voice of Cathay Pacific Airways pilots. The main objectives of the Association are to:

• Protect and further the interests of the aircrew profession
• Safeguard and improve the interests and rights of members of the HKAOA
• Take lawful action deemed desirable for the benefit and advancement of HKAOA members and their families
• Take lawful action deemed desirable to further the interests of aviation
• Regulate the relations between members and their employers
• Secure unity of action to protect and further the interests of members

SOURCE HKAOA