Czech Airlines settles dispute with pilots over airplane transfer

On 1 December 2011 the pilots of Czech Airlines (CSA) launched a protest against the transfer of the leases of 11 aeroplanes to the company Holidays Czech Airlines within the Český Aeroholding group. The transfer was part of a restructuring of the airline. As part of the protest, some pilots did not come to work, with the result that CSA had to cancel 25 flights. Agreement was reached later in the month on the transfer of both planes and pilots to Holidays Czech Airlines.

Protests were organised by the Czech Airline Pilot Association (CZALPA), which has been critical of Czech Airlines’ (CSA) management and its approach towards the restructuring of the company. According to the CZALPA’s spokesman Filip Gaspar, by transferring aeroplanes to the sister company Holidays Czech Airlines within Český aeroholding, the management contravened the restructuring plan, which envisaged a reduction of the fleet to 27 planes. After the lease transfer to another company, only 19 planes will remain with Czech Airlines. Gaspar also argues that the airlines will lose their regional routes and without them they will decline in value for buyers in the upcoming privatisation. President of CZALPA, Peter Žmolík, said:

Our aim is in no way an attempt to harm the company’s operation and make passengers’ lives difficult. However, we must inform the public as well as the owner about irreversible steps taken by the management which go against the long-term interests of the company and show signs that funds are being siphoned off.

The pilots asked that a strategic partner with experience in the aviation field be found immediately for the CSA.

The first stage of protest

For the first stage of the protest, CSA pilots took a day’s sick leave. This action was recommended by their union, CZALPA, which stated that all pilots should consider their state of health and mental strain caused by the tense situation in CSA, as well as the unilateral decision of the CSA management to take one-third of its planes out of the company.

The company management claimed that the pilots’ protest was illegal. CSA’s CEO Philippe Moreels said: ‘Our lawyers are confident that this action is illegal. It will not end without punishment. CZALPA sent their pilots in to fight with unloaded guns.’ The CSA’s management was supported by the Finance Minister Miroslav Kalousek, who said: ‘The pilots’ protest against approved steps is not only unjustified, but also obviously illegal’.

According to the minister, the management teams of Český aeroholding and the CSA were complying with the approved restructuring plan approved by the Czech government.

Strike alert issued

As the management refused to negotiate with CZALPA and reach an agreement on how to resolve the situation in CSA, the Executive Council of CZALPA called CSA’s pilots to issue a strike alert on the following day, 2 December 2011. CZALPA’s President Peter Žmolík said:

The first stage of protest was successful and highlighted prolonged problems in the company, bad management and especially the upcoming withdrawal of aeroplanes from the company, which may even lead to its bankruptcy.

The pilots also published an open letter to Czech politicians in which they demanded that CSA’s problems should be dealt with as promptly as possible. The open letter mentioned that the company’s management had embarked on a campaign to intimidate and threaten employees and had violated legal regulations. Employees’ representatives were not being allowed to pursue trade union activities and the management used coercive measures to expel them from the CSA building where CZALPA has its office.

Compromise reached

However, on 14 December 2011 the pilots ended their protest. CZALPA and Český Aeroholding have signed a memorandum of understanding and agreed on the transfer of 100 CSA pilots to the unit Holidays Czech Airlines. CZALPA has agreed to the transfer of planes within Český Aeroholding from CSA to Holidays Czech Airlines on condition that this will not lead to a substantial restriction of CSA’s commercial activities and regular flight network. Under the agreement, a CZALPA representative will participate in the process of selecting a strategic partner for CSA.

Sona Veverkova, Research Institute for Labour and Social Affairs