Dispute over pilot pay and working conditions

Published: 5/26/2000

A work-to-rule action started 11 days ago by Malev pilots is forcing the airline to cancel up to three to four flights a day, according to reports. Flights in general are being delayed up to an hour, with flights later in the day the most affected according to a source quoted by Reuters. The basis of the dispute lies in pay and conditions of work for the flag carrier's pilots, whose union claims that although the airline is proposing to increase salaries, it plans to reduce benefits currently paid in hard currency. According to local reports talks to resolve the dispute broke up without resolution on Wednesday with the dispute extended for an indefinite period and Malev refusing to comment on the dispute. The airline is currently involved in significant changes in the structure of its workforce, as part of the run up to privatisation, with Ferenc Kovac, the airline's managing director, announcing in March cuts of 10-15% of the workforce in 2000 as part of the company's restructuring ahead of privatisation. The dispute does not necessarily come at a very good time for Malev, given that the details of its privatisation are due shortly from the Hungarian privatisation agency the APV and the potential sale of significant stakes in the airline to a strategic investor, with Air France and Swissair mentioned as contenders. The government is reported to be intending to retain 50% plus one share in line with current Hungarian privatisation legislation.

Article ID: 1816