COTU joins the table..
This is a very good example of how Unions can criple a company.
2 days of lost revenues so far. Bad company image. bad customer perceptions. Indirect loses,e.g. unplanned extra costs for the passengers,loss of business,e.t.c.
Where will their pay come from this month?
I believe in market forces determining market renumeration. If you value your workers compensate them adequately. In a service oriented company,the most valuable resource is the human skill. They can break or make the company. Important lesson for KQ and all other service oriented companies.
On the other hand,130% increase at once - really?? maybe spread it over 10 years,the same way teachers got their increase. You dont wake up,were being paid 50K and now want to be paid 115K overnight,and demand that the company does the same for everybody. How high an increase any employee gets is dependent on their performance. and that is why,some guys can get 10% increase,while others get 50%.
If i was KQ management,i would:
- give them a deal that makes them go back to work. e.g. 25% increase immediately,and stagger the rest of the 65% over 10 years.
- dont sack immediately.
- Take the opportunity to learn the issues of the employees as regards the disparity in salaries,and address ut. Employees in some companies abroad take pay cuts if it is necessary.
- Good opportunity to identify unproductive workers and get them out.
- Right size. Identify it.. Seek ways to do it. dont victimize.
At the end of the day,the bottomline is always money and job satisfaction. Work on this and you have a successful company.