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Declining job security. Aleksander Wasland President Norsk Flygerforbund - NF (Norwegian Airline Pilots Association). Norsk Flygerforbund Norwegian Airline Pilots Association. 11 difficult years for aviation. 11 years with extreme competition. Global: Middle East v.s .
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Declining job security AleksanderWasland President NorskFlygerforbund - NF (Norwegian Airline Pilots Association)
11 yearswithextremecompetition Global: Middle East v.s. Europe/North America
Gulf carriers expanding significantly Number of Non-Stop Passenger Destinations Growth Percentage 219% 59% 55% Source: OAG Schedule Analyser, October 2012, CAPA
Middle East continues to grow as a connecting hub Source: IATA Premium Traffic Monitor (data is YTD Aug-12)
11 years with extreme competition European: Legacy carriers (e.g. Lufthansa/Air France/BA/SAS) v.s. LowCost Carriers (LCC)
Some forecasts expect LCC market share in Asia to exceed Europe and the U.S. by 2015 Source: Citi Research
Major change in employmentstructure • Collectiveagreements (CLAs) cancelled • Severalbankruptcies (surplusof pilots) • Companies sees opportunities in turbulent times – «be thankful - You have a job!» • From securepositionswith an airline to temporarycontractshosted by contractcompanies
Temporary «Easy to fire» The «ContractIssue» NOT employed in theairline Secret Poorsocialsecurity Politicallyunacceptable (tax)
Declining Social security • Lack of Basic social security (not a member of national (social) insurance programs) • No or very limited • Sick pay • Insurances • Maternityleave (etc.) (So much for equalityof sex…) • Pensionscheme • Unemploymentinsurances
Decliningtransparency • Secret contracts • Jurisdiction: Isle of Man/Estonia/Gibraltar etc. • Hard to supervise. Example : • Contract: Isle of Man • Company AOC: Norway • Base: Malaga • Pilot: Swedish • Taxation = individualresponsibility “8. The Contractor undertakes and accepts responsibility to discharge promptly all income Tax, National and Social Security and all other tax obligations arising in any jurisdiction in connection with his earnings hereunder and shall keep (the contract company) and (the airline) fully indemnified and harmless from such obligations.”
Decliningbasicrights • Terminationofcontracts (immediate) • Lawsuitson Isle of Man etc. • No representationallowed (possible)
Declining flight safety? • Why talk aboutpotentionaldecliningflightsafetywhen air transport is safer than ever? • Safetystatisticsare re-active • Safetywork is pro-active • 30 yearswith CRM/Human Factors/Safety systems/Technology
Declining flight safety? • Does increased individual pressure generate safety? • Time-limited contracts • Illness – not fit • “If there is doubt – no doubt”, or…? • Immediate termination if “failure to pass” • Reporting culture • Company Safety Culture • In compliance = safe • (CAA) supervision. Easy in this new world?
Flight Safety CLA Reduced flight safety? National law International/European law
NF says YES to: • Competition • Even playingfield • Innovative and successful operators • Change • Commonintl. rules
! NF demands: • Pilots must be employed by theairline ICAO Annex 6. Part 1 8.7.6.2 The maintenance organization shall employ the necessary personnel to plan, perform, supervise, inspect and release the work to be performed. Nothing on flight crew!
! NF demands (cont): • Legislation: Markets developquick. Legislationslow. • Increasedneed for regulations (add lost safetylayers) • Common EU-law: «Clogthe holes» • IncreasedSupervisionofcompanies: Taxation/Operative/HMS • Transparency
Tomorrows pilots • No or limited selection of pilots? • Licence = qualified? • “Voluntary coersion” • The dream job – disappeared • Migratingsubstitutes? • Foreign workers or a healthynational (EUR) industry?
