Corporate News
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
- KQ said it had been forced to cancel several flights since its pilots started a go-slow to protest the carrier’s decision to lease crew for Jambojet, its budget subsidiary.
- The airline said it had lost Sh50 million in cancelled flights since start of the go-slow in March.
The High Court has stopped Kenya Airways
pilots from going on strike until a dispute with their employer over
mode of hiring flight crews for the national carrier’s low-cost airline
is determined.
Lady Justice Hellen Wasilwa issued the order last week after
Kenya Airways said it had been forced to cancel several flights since
its pilots started a go-slow to protest the carrier’s decision to lease
crew for Jambojet, its budget subsidiary.
KQ said it had lost Sh50 million in cancelled flights since start of the go-slow in March.
KQ pilots were also ordered to continue working
during off-days and leave days in return for overtime pay. The go-slow
was sparked by KQ’s decision to hire crews for Jambojet’s coastal
routes, which the pilots feared may be extended to other routes and
render them jobless in the long run.
“KQ has demonstrated the financial losses that it
has suffered due to the withdrawal of goodwill,” the judge said. “ This
has not been contested. Kalpa (Kenya Airlines Pilots Association) is
barred from calling for industrial action pending the determination of
the suit.”
KQ filed the case in March after its pilots -
through the association - announced that they would only work as per the
terms of their contracts. The standoff is also part of conciliation
talks between Kalpa and KQ over working conditions for Jambojet pilots.
The low-cost carrier hired the aircraft from
Canadian firm DAC Aviation under a wet lease agreement, which also
secures a crew for the duration of the contract.
The lobby wants Kenya Airways to extend an
agreement for pilots’ working conditions to Jambojet personnel, while
the national carrier insists that the lobby should initiate separate
talks with the budget airline.
The judge also ordered KQ and its pilots to return
to the negotiation table and seek a middle ground, then report back to
her on July 29 for directions, depending on the outcome of the talks.
KQ lawyer Jacqueline Munyaka had told the court
that the national carrier now risks facing liability claims as a result
of the cancelled flights. The withdrawal of goodwill, she added, was
done without prior notice.
Kalpa argued that withdrawal of goodwill does not
qualify as industrial action hence does not require the same
notification procedures as strikes.
But Lady Justice Wasilwa ruled that it counts as
industrial action, as it was part of the collective bargain agreement
signed by Kalpa and KQ regarding working conditions.
“The withdrawal of goodwill endangers the existence
of KQ. It also has potential liability claims against KQ and has a
negative long-term reputational impact on KQ’s business. Kalpa neither
notified KQ before issuing the withdrawal of goodwill notice nor did it
issue the reasons why,” said Ms Munyaka.
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