Cathay Pacific yesterday sought union support for a radical plan directing all staff to take unpaid leave. Faced with losses of at least US$3 million a day, the company wants staff to take a week's unpaid leave each month for the next four months. The scheme would begin on June 1 and is part of a package of measures in response to plummeting passenger numbers. Reflecting the impact on Cathay and other airlines, Agence France-Press last night quoted the Hong Kong Airport Authority as saying passenger throughput had plunged to 20,000 a day from a normal 100,000. Cathay's measures include severe cuts in flight schedules and the decision this week to halve the company's dividend. The latest cut would save the company an estimated HK$600 million, based on last year's total staff costs, including bonuses, of HK$7.9 billion. This would come on top of the HK$934 million saved by reducing the dividend. Union representatives said they planned to withhold support of the plan until the carrier offered more assurances that sacrifices would be shared equally throughout the company. A union representative said a final version of Cathay's 'Special Leave Scheme' would be issued to staff tomorrow, with a one week deadline for a decision on acceptance. 'We're not rejecting their plan, but we haven't agreed to anything yet,' the official said. Most employees agreed with the need to cut costs but the union representative added: 'All we're asking for is to delay the implementation of the scheme so that the staff who need to can make the necessary financial adjustments. Some of us have mortgages to pay and other responsibilities and we need to talk to our banks about rescheduling.' Another union leader said employee groups had put forward suggestions for making the scheme more acceptable and would wait to hear back. 'Management is pretty adamant that we agree to the scheme, so what we'll do is take it to our members and see what they have to say about it,' the second official said. 'Our biggest worry is that it seems to ask for more sacrifices from frontline staff than senior executives. If things are so bad, why are they still paying a dividend? And what assurances can they give us that this won't just be opening the door to permanently reducing our salaries and making us work more hours?' Cathay spokesman Lisa Wong said it was not appropriate to comment at this stage 'What we are doing now is listening to the staff groups' comments on the plan,' she said. Monitor - B14
