Equal pay for equal work?

Speaking at a press conference in Ha Noi, VNA’s chief executive Pham Ngoc Minh revealed the number of pilots applying for sick leave had doubled since 2013, although only 10 had actually produced doctor’s certificates to justify their health conditions.

“The pilots’ applying for sick leave and the resignations submitted by more than 30 pilots are unusual and serious. It not only directly impacts VNA’s operations and business, but also negatively influences other pilots and staff members,” said Minh. He added that the airline has already reformed its salary structure five times since 2008.

Clearly, the reforms were far from the liking of his pilots. It’s an issue that is hardly exclusive to Vietnam. The region’s rapidly growing fleets, especially in the budget airline sector (VNA is also losing pilots to boisterous local no-frills operator VietJet Air), have resulted in serious shortages of skilled pilots in many countries, particularly in high aviation growth nations such as China, India and Indonesia. To fill the gap, they import crew from overseas and the only way to attract expatriates is to offer substantial pay packets and other benefits. Complicating matters has been the expansion of Middle East airlines which for years now have been poaching experienced pilots from across the region.

Vietnam is typical of the disparity that exists and the unrest bred among locals, miffed that fellow crew are getting paid far more than they are for doing exactly the same job. At present, VNA’s foreign pilots are paid up to $12,000 a month. A Vietnamese pilot flying a 777 or an A330 gets just $6,197. A local A321 pilot gets $5,400. Six hundred of VNAs’ pilots, or 70 per cent of its cockpit crew, are local.

In 2008, VNA did formulate a roadmap for reforming the salary structure of the airline under which the local pilots’ income would appreciate regularly and be capped when it touched 80 per cent of the foreign pilots’ pay. For example, in July this year there will be another pay rise, lifting a 777/A330 pilot’s salary to $8,310 a month and an A320 pilot’s wage toA shocked CAAV moved quickly to sort out the dispute. $7,420. But it still leaves a major disparity, not only with foreign crew but with the levels paid to pilots elsewhere in Asia. For instance Korea’s Asiana Airlines pays its local single-aisle pilots around $12,000 monthly and Jetstar $12,630.

As Andrew Herdman, director general of the Association of Asia Pacific Airlines told local media: “The growth of the industry in Asia means there is insufficient numbers of pilots. They recruit globally and they pay competitive international salaries. That breeds unhappiness. The issue is universal. ” In the end, facing major disruption, VNA asked the country’s Minister of Transport Dinh La Thang to intervene. He then directed the Civil Aviation Administration of Vietnam (CAAV) to decline all leave applications from VNA employees temporarily in an effort to ensure the smooth running of the airline’s ongoing operations, especially through the New Year period. A shocked CAAV did move quickly to sort out the dispute. It said the fact so many pilots failed to turn up for work put air safety at risk, this at a time aviation safety is a major news topic in the region. Minister of Transport Thang also ordered VNA, which raised $51. 3 million in an initial public offering in November, to evaluate and raise pilots’ incomes during the first quarter of this year.

Going forward, VNA said it will collaborate with the Ministry to evaluate its salary structure and clarify regulations in order to tighten its management. As for the pilots, it has set a fresh target for enrolling and training pilots, so as to boost the percentage of Vietnamese pilots in its staff. Whether they can eventually look forward to taking home the same pay packet as their foreign colleagues remains to be seen.