Air Niugini Pilots sign contract

In what should come as reassuring and timely news for the travelling public, AIR NIUGINI has successfully completed complex new contract negotiations with the airline’s pilots, both national and expatriate.
The majority of the pilots had signed by the deadline of 31st December 2014 and have been working under the new Contract terms and conditions.
This is according to a statement released by the Chairman Sir Frederick Reiher recently.
ANG wishes to clarify to customers and the general public why it was absolutely essential that substantial changes were made to the historic salary, and other benefits, enjoyed by the airline’s pilots.
The salaries and benefits for pilots have for many years progressively become unaffordable, and in excess of the remuneration package enjoyed by pilots of comparable positions in other airlines in the region and abroad.
If this continued, Air Niugini would simply not be able to sustain its operations and compete with the rival airlines – thereby necessitating either a cutback in pilot numbers or substantial airfare increases.
In its negotiations with the airline pilots, Management sought to come up with an employment contract that would be affordable – and fair.
This was made known to the pilots from the very first day of negotiations.
Air Niugini employed in total One Hundred and Sixty Seven (167) Expatriate and National Pilots on Contract. Of this number One Hundred and Thirty Four (134) Pilots have signed the 2015 Pilot Contract continuing employment with Air Niugini.
Current Total Pilot Numbers stand at One Hundred and Eighty Six (184) with the inclusion of Fifty (50) Cadet Pilots employed under the Air Niugini Pilot Cadetship Program.
Thirty Three (33) pilots have left due to various reasons – 21 resignations, 5 did not sign the new contract, 2 were not offered contract renewal and the rest reaching retirement age, health and other personal reasons.
The new Contract has the following major provisions:
One contract for all pilots, national and expatriate, to ensure consistency and equality; Changes in basing and rostering to enhance productivity; A reduction in salary of 11 per cent; A reduction in other benefits by a maximum of 9 per cent; Housing benefit was retained and significantly improved in terms of allowances to encourage pilots to own their homes.
The Board and Management of Air Niugini acknowledge that the impact of the new Contract on pilots is considerable – and for that reason we appreciate the spirit in which the overwhelming majority of pilots accepted it.
In a real way the pilots are contributing towards Air Niugini’s future security and success.