Air NZ pilots to take 30 per cent pay cut, 300 lose jobs

Thursday, 7 May 2020

Air New Zealand planes parked up at Auckland Airport as borders shut down.

A pay cut of 30 per cent for 900 jet pilots has been agreed between their union and Air New Zealand, while 300 pilots will be made redundant.

The New Zealand Airline Pilots Association (NZALPA) came to an agreement with the airline on Thursday after weeks of negotiating the cuts required to address the airline industry's 'uncertain path to recovery'.

The airline's domestic and international schedules were slashed as demand collapsed, as the Covid-19 pandemic brought the industry to its knees.

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New Zealand Airline Pilots Association president Andrew Ridling says it has been a stressful time for its members and their families.

Association president Andrew Ridling said it negotiated to save the jobs of as many pilots as possible, and to 'ensure a fair process for getting other pilots back in the air once the recovery gets under way'.

Those 900 pilots that stay on the payroll will take a 30 per cent pay cut for the next nine months. They will continue to fly Air New Zealand's jet aircraft on both domestic and international flights.

Airlines around the world are facing a struggle to survive due to the coronavirus pandemic.

'Sadly, almost 300 of about 1200 of our Air New Zealand jet pilot members are being made redundant this week (some taking voluntary redundancy) or are accepting early retirement.

'Some of those pilots will choose to be furloughed, which is effectively leave without pay for the time being,' Ridling said.

Pilots that had been made redundant or furloughed would be the first to be called back when the sector recovered, he said.

Furlough could be as long as 10 years in some cases, he said.

Pilots could still choose to take redundancy at any time or find work elsewhere.

Air New Zealand recognised the need to retain pilots so it could 'turn the tap on again quickly', when demand increases again and another group of pilots that could be brought back in as needed.

'The furlough provision is a major achievement for our members,' he said.

Ridling said it achieved the best possible outcome under the circumstances and said the association fought to ensure a 'clear path' back to work at the airline for its members, despite not being able to save every job.

'This has been a very challenging and stressful time for NZALPA, our members and their families and we will continue to support them until they are able to return to their careers in aviation,' he said.

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