Government tells BWIA unions: Give up 10% to save airline

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Government tells BWIA unions: Give up 10% to save airline
BY JUHEL BROWNE
Guardian 06.24.03

Government has rejected the proposals put forward by three unions at BWIA
for labour cost reductions and is insisting they each give up ten per
cent.  Trade Minister Kenneth Valley met with the unions yesterday and told
them their proposals were not enough to ensure the State's future financial
support of BWIA.  "There was some effort, but I told them if we have to
move forward we need more than that," said Valley, the line Minister
responsible for BWIA yesterday.
Valley, a member of the Sub-Committee on BWIA, held a meeting with the
Aviation Communications and Allied Workers Union, Airline Superintendents
Association and Communication Transport and General Workers Trade Union
leaders at the Eric Williams Financial Complex in Port-of-Spain.

Valley was accompanied by fellow Sub-Committee members Works Minister
Franklin Khan and Junior Finance Ministers Conrad Enill and Christine
Sahadeo.  Also attending the meeting were Government's consultants on BWIA
- Zwaig Consulting Inc president Melvin Zwaig and vice president Cameron
McCaw.  The two-hour meeting began at 3 pm.  Valley said the Sub-Committee
met with the Zwaig executives earlier in the day and had concluded the
unions' suggestions for labour cuts were not enough.  "Basically what they
said is we have to do better than that," said ASA president Theo
Oliver.  ACAWU has proposed allowance cuts that would represent a 6.07 per
cent reduction in BWIA's payroll while CATTU's proposal would result in a
six per cent reduction.

The unions will be meeting with Zwaig and McCaw today to discuss exactly
how they could increase their proposals for labour cost cuts on behalf of
their members.  The union leaders said their members are willing to
negotiate reductions in allowances but have twice refused to take any
further cuts in their wages which were frozen in 2001.  "We are looking at
productivity gains. It does not necessarily have to be a wage cut," Valley
said.  Trade Minister Kenneth Valley said yesterday he expects to present
his recommendations on BWIA's cost reduction plans to Cabinet on Thursday.
Valley confirmed he received the BWIA plan from the airline's acting
chairman Anthony Jacelon last week Monday and is still reviewing the
proposal. However, Zwaig Consulting Inc vice president Cameron McCaw said
his company has not been given any time frame by the Government to complete
their work. "It's an ongoing thing. We are working closely with the
Government," McCaw said. "Any company that has financial challenges is
always difficult."

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