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Gulf Air union to protest management pay hikes

Thu Oct 22, 2009 10:36am EDT

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MANAMA, Oct 22 (Reuters) - The union at Bahrain's Gulf Air [GULF.UL] is calling on members and employees of the loss-making carrier to start labour action to protest against pay rises for senior management amid planned lay-offs, a union official said.

Industrials

Union head Mustafa al-Tooq told Reuters a sit-in was planned at company headquarters on Nov. 5.

"After the sit-in we will proceed with strike preparations," Tooq said, adding that strike could come two months later.

Any escalation in the conflict between management and unions could burden the restructuring process under the new chief executive Samer Majali.

Three chief executives have tried to turn around Gulf Air since 2002, cutting jobs and realigning its network as previous shareholders Abu Dhabi, Qatar and Oman exited the ailing carrier.

Tooq said unions were protesting recent pay rises for senior management and "disrespect" of management towards unions during restructuring.

He said management had never seriously responded to workers' demands to negotiate a 2008 increase in working hours to 8.5 hours per day from 8 hours.

"The Gulf Air trade union is an important partner within this process with whom we engage on a regular basis," Gulf Air said in a statement in response to questions from Reuters. It did not comment on the pay raises and other union complaints.

Unions have said Gulf Air plans to lay off 272 employees by the end of the year, with management saying it only planned to cut positions through natural attrition and fire employees for misconduct.

Majali told Reuters in August the carrier might renegotiate plane orders with Airbus (EAD.PA) and Boeing (BA.N). [ID:nLN256881] (Reporting by Frederik Richter; Editing by Jon Loades-Carter)



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