Pay under debate as TAP results improve

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In February 2002, the Portuguese national airline, TAP, announced greatly improved financial results for 2001, cutting its losses by half compared with 2000, and more than meeting the target set in its recovery plan. The results surprised many, given the current problems in the international airline industry. TAP workers who have contributed towards the improved results are to be rewarded with a bonus, which is to be awarded by the middle of 2002, but trade unions are seeking pay increases following a freeze in 2001

In February 2002, the Portuguese national airline,Transportadora Aérea Portuguesa (TAP) announced a net loss of EUR 53.2 million, half the loss made in 2000 and an improvement of 2% on the target set by the company's recovery plan of a loss of EUR 54.6 million in 2001 (PT0104142N). Against the international backdrop of recession in the airline sector, TAP's improved results came as a surprise. According to the company, the results are due to a more efficient operation, with higher income and costs being brought under control. The reduction in costs, greater use of the fleet and new flexibility in terms of timetables and routes, resulted in the better-than-expected performance and allowed TAP to gain market share between October and the end of the year.

TAP employees who made a contribution towards the improved results are to be rewarded with a bonus. The company will analyse the workers earnings' during the year and determine what is necessary to restore their purchasing power in the light of inflation. This amount will be paid as a one-off sum by the middle of 2002. This is part of a new approach that aims to link pay with the company's performance.

Although the Airline and Airport Workers' Union (Sindicato dos Trabalhadores da Aviação e Aeroportos, SITAVA) is pleased with TAP's positive results, it said that this was due to the commitment and productivity of its workers, despite the sacrifices that were made in 2001 when there was no pay review. It therefore demands, irrespective of the promised bonus, that the company's 2001'pay adjustment agreement' be fulfilled. This was signed by both parties and provides that:'an adjustment in relation to the months of January to June, plus the holiday bonus, will be due, through the extraordinary payment of the corresponding amount, if, at the end of 2001, the result for the year shows a favourable shift in relation to that projected and enables such a payment to be made.'