as mentioned in article above:
Pac Blue staff in limbo over jobs
By DENISE MCNABB - The Independent | Friday, 18 July 2008
UP IN THE AIR: Pacific Blue communications manager Phil Boeyen said today the contracts for the 200 New Zealand staff are still being finalised so no further details could be given.
Advertisement
AdvertisementMany of 200 Pacific Blue cabin crew and pilots fear they will not be rehired by the airline after August 19.
That is because it terminated the services of their contractor, Kaiapoi-based Contract Air Services, yesterday from that date.
Speculation is rife among the staff that the budget carrier will redeploy staff from its Australian parent, Virgin Blue, as it cuts back its own services and delays aircraft orders, reducing the number of staff required.
Pacific Blue operates a budget trans-Tasman and domestic service out of Christchurch.
Its PR man Phil Boeyen said today staff will be hired directly by the airline but confirmed they had not yet received new contracts.
He said they will be given more details at a road show next week.
"This is a matter of changing the way we structure crew employment," he said.
"It's business as usual.
"Pacific Blue is currently working through new employment arrangements for pilots and crew members who were employed by Contract Aircrew Services Ltd. We have been communicating with team members regularly following advice from Contract Aircrew Services Ltd that due to a change in their business direction they no longer wish to be the provider of crew to Pacific Blue.
"We now have to go through a period of consultation with staff and that process could not be commenced until their former employer had formally notified them, which has now occurred/is now occurring.
"The terms and conditions we will offer crew will at a minimum match their current contracts with Contract Aircrew Services Ltd."
The crews' contracts with Contract Air Services have no redundancy clauses but staff will get lieu days and holiday pay owing.
Virgin Blue chief executive Brett Godfrey, told Australian website BusinessSpectator.com.au today the airline "will be pulling out probably about another 3 per cent of capacity" resulting in the parking of six aircraft. He also said new aircraft deliveries will be postponed as the airline continues to compensate for the fuel crisis.
Pacific Blue communications manager Phil Boeyen said today the contracts for the 200 New Zealand staff are still being finalised so no further details could be given.
Since learning yesterday of the termination of their contracts staff have been ringing media raising their concerns.
This week Australian transport company Toll Holdings gave away its 62.5 per cent stake in the parent Virgin Blue to its shareholders on the basis of one share for every Toll share they held. It also took an A$1.3 billion hit on its books for the disposal.
Merrill Lynch is forecasting Virgin Blue will make an A$75 million loss in the 2009 year.
www.businessday.co.nz/industries/4623074