April 2009
According
to the Monthly Economy Report published by the Cabinet Office in the beginning
of Mar. 2009 (for Feb.2009)
The economy is worsening rapidly while in a severe
situation.
\ Exports and Industrial production are decreasing very substantially.
\ Corporate profits are falling substantially and
business investment is decreasing.
\ The employment situation is getting worse rapidly.
\ Private consumption is decreasing moderately.
As for short-term prospects, while the economy is likely to continue
worsening for the time being, there is fear that rapid reduction of production
will lead to significant employment adjustment. Moreover, attention should be
given to the risks that the economy would become severer due to the worsening
global financial crisis, concerns over further slowdown in overseas economies
and effects of fluctuations in stock and foreign exchange markets..
URL: http://press.jal.co.jp/en/release/200902/001117.html
PDF: http://press.jal.co.jp/en/uploads/3Q08%20Result%20Final.pdf
a) Fleet Strategy: Still working on introducing “Fuel-efficient”
aircrafts and retiring aircraft such as classic-type 747 by the end of July
2009. E170 was introduced to our affiliates J-AIR. Because of Boeing 787 Dreamliner’s delivery is still unknown, as an alternate,
increased the order of 767s and 777s. Also, JAL is trying to reform its cargo business
by starting
code-share flights with NCA (Nippon Cargo). As a result, not only by the
impact of financial crisis, equal to seven 747-400 aircrafts might be grounded.
It is an irony, because there is a movement that JALways
(JAZ) non-unionized, outsourced 747-400 crew to be canceled their contracts. As
a result, our long year actions to protect Job Security will be moving forward
greatly.
b) Expansion of Subsidiary Airlines: JAL will expand the use on international
and domestic routes of Group subsidiary airlines: JALways
(JAZ), JEX (JAL Express), J-AIR. JALways operates on
international routes, primarily leisure and
JEX currently serves domestic
J-AIR operates CRJ regional jets in
c) Personnel Cost Reduction &
Workforce Productivity Improvement
Ø
In FY2007, JAL management initiated a review or devalues of employees work
content and work processes, work form, manpower allocation and restructuring
&selling the affiliated businesses such as JAL Card (Credit card company).
Ø
JAL expects to achieve its target of a 10% increase in the productivity of
its workforce by the end of FY2008, one year earlier than originally expected.
JAL Flight Crew dep. obstinately insists that 10% increase in the productivity
should be achieved by efficient crew assignment (*), and by taking away our
summer vacations (=SV: 3days) till the end of FY2010.
Ø
JAL had cut our retirement benefit by approximately 9% since Apr.1st
without agreement.
Ø
Detrimental revision of requirements for ‘Announcement
of a Leave Of Absence.
(*) A number of JAL crew is assigned
to the “Ground Job” in addition to their daily flight roster. There is no
agreement on this issue. Efficient crew assignment means withdrawal from these GJs.
Ø
“5% Wage Cut” from Oct 1st,
2008
Pay cut for all employees from Apr. 2006 (10%
reduction of base wage) had ended by the end of March, 2008.
Nevertheless, by reviewing the wage system, JAL continues to reduce personnel
costs resulting in a reduction in costs of 10 billion yen on a yearly basis.
On Oct.1st, JAL management changed the Wage Table by “legal way”,
without any agreement with 7 unions but agreement with company-union, “JALFIO”.
The management explained that this wage cut had to be done because of the
increase of JAL’s capital by \150 billion, issuing 61.4million new Preferred
stock. These stocks were bought by the general trading company, Mega-banks and brokerage
firms.
By this capital increase, JAL accelerates the aircraft renewal and plans to concentrate
on making satisfaction for a debt (e.g. Total debt: FY2008 $13.2 billion → FY2010 $96.6).
The Preferred stock carries no voting rights, but has a convertibility feature
into common stock (term: min.3, max.10years), and also it is not mandatory to
divide the profits to those Preferred stock holders if company’s achievement is
worse. We are now in the Spring negotiation season,
but the management insists that dividends are the life line for JAL, and unable
to raise (or resume) our salaries.
On the other hand, did the management construct highly maneuverable
risk-hedge, or highly profitable constitution?
Ø
Possible additional wage cut in FY2009
JAL management referred to “additional reduction of personnel costs”. There is
no precise information about this.
d) Urgent
Cost Reduction Action- Suspending most of the Flight Training for Cost
Reduction
From the end
of last Dec. to end of this Mar, management suddenly suspended most of our “Upgrade”
or “Conversion” Training. The reason was the worse foresight of the result of
FY2008. For the Flight Crew Department, the action taken was above “Ugly” one,
and for example, Maintenance Department stopped their air conditioning system
in their hangar in this cold winter season. Cabin Attendant Department has
already begun reducing their stay night or the rest days for their long-haul
flight since last October.
Against this reckless drive, we had many negotiations, and finally achieved the
answer to restart CAUG (Captain Upgrade Training), but other conversion
trainings or FOUG (F/O Upgrade Training) are still suspended till Mar 31st.
During the suspension, these flight crews’ rosters are mostly “blank” (though
paid allowances and/or basic salaries). All flight crew unions strongly opposed
against this “foolish” and “self-destructive” action, and finally urged the
management to say “we’ll never do this again”.
e) Actions taken against Management’s reckless drive
JFU, JPU (former JAS pilot union)
and other JAL unions prepared to go on strike on Mar.18th. Finally,
the strike was avoided.
On 25th
Mar. 2007, we concluded a temporary agreement for scheduling. Substantial
negotiations on scheduling issues started and negotiation was held several times
and this temporary agreement was renewed last Oct till the end of March 2009.
The topics will be the long-haul flight (NRT-BNE, (8+55) by 767,
and so on.
The management has announced all B747 classics’ retirement by the
end of Jul. 2009, and therefore flight engineers job security and future
problems have appeared consequently. There are a hundred of flight engineers in
JAL, and this problem have to be solved by this summer.
Unions have been demanding that all flight engineers should be able to remain
as flight crew position and paid accordingly until each FEs’
retirement, or to get a pilot conversion training without company’s sorting but
based on one’s will.
In early 2006, the company has presented
a plan for the
1.
Basically all
2.
Conversion
training to a pilot will be given, if he satisfies certain criteria which are,
of course, set by the company.(
3.
Early retirement. This
retirement will be treated as “personal reason” and only advantage compared to
the regular retirement is the relief measure explained above as an additive to
the normal retirement allowance.
In
At first, Management was negative toward solving this
issue, but three crew unions’ persistent efforts led the Management into
negotiations.
In March 2007, we mentioned our decision that we can conclude the agreement. Nevertheless,
there were still lot of unsatisfactory terms, therefore several saving clause had
been left, and Management promised that they would keep on negotiating.
This October, the Management revised their proposal, but it still does not
refer to our demand at all, such as company sorted pilot conversion training.
They give no chance for the young
5) Accident Investigation
in
The Ministry of Land, Infrastructure, Transport and Tourism,
the Ministry of Foreign Affairs of Japan, the Ministry of Justice and the
National Police Agency have deliberated and agreed to submit the notification
of differences to ICAO on August 4, 2008 for the first time in 14 years stating
that Article 5.12 “cannot be perfectly fulfilled.”
Recently, we faced a
http://search.japantimes.co.jp/cgi-bin/nn20090221a1.html
In this case, pilots had been questioned by an accident investigator.