Locally-based cabin crew staff and ground staff of Cathay Pacific Airways have won a pay increase of 5 percent next year, though the pay hike was lower than they had demanded.

Apart from the pay raise, the 12,000-strong employees will also receive a year-end bonus equivalent to an additional month's salary before the Lunar New Year.

Settlement came on Friday after a lengthy negotiation with the airline management.

At the same time, ground staff of sister airline, Dragonair, will have the same level of salary adjustment.

Cathay Pacific announced on Friday the 2012 salary adjustment package, after sealing an agreement with its flight attendants' union.

The airline said it decided to award a pay increase to the employees in view of the current economic environment, to enhance the competitiveness of the company salaries and retain staff.

Speaking afterward, Dora Lai, chairwoman of the flight attendants' union, said on Friday the 5 percent increase rate was acceptable, although staff had demanded an increase of 8 percent.

"This year's negotiation is particularly difficult," she said.

"During the negotiation, the global economy was encountering sudden fluctuations and the airline industry was affected greatly, while inflation has also caused a huge impact. Taking into consideration various factors, including the company's business performance this year and the forecast for next year, we decided the 5 percent increase margin was acceptable, although there is a distance from our requirement."

Lai said it is a good beginning toward a consensus with the employer.

In the unions' view, the road is long to achieve the better salaries and they did not expect a complete victory in a single negotiation.

She also called on other employers in Hong Kong to award reasonable salary increases to their staff in the current economic environment, to enable them to fight inflation.

Referring to the appeal from the flight attendants' union, Irons Sze, president-designate of the Chinese Manufacturers' Association of Hong Kong, said many small and medium enterprises (SMEs) will find life very difficult in the current economic climate.

"The Chief Executive and Financial Secretary have pointed out that the export trade is facing great difficulty, and the SMEs are fighting for survival," he said.

Most employers, he said, are willing to give bonuses to reward staff at year-end, instead of giving salary increases in line with the inflation rate.

joseph@chinadailyhk.com

China Daily

(HK Edition 12/03/2011 page1)