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Korean Air closes 3-year-long wage dispute with pilot union
Collected
2018.01.29
Distributed
2018.01.30
Source
Go Direct
The pilot union of Korean Air Lines Co. (KAL) agreed to the terms for retroactive wage increases for 2015 and 2016, ending a three-year-long labor dispute that had unsettled operation of the country’s largest flag carrier.

The airline’s pilot union said Sunday that 713 or 68.23 percent of the 1,045 members participated in the vote, of which 54.98 percent approved the terms reached by management.

Shares of KAL closed Monday down 0.52 percent at 38,350 won ($36).

Under the agreement, the company will back pay 1.9 percent in wage increases for 2015 and 3.2 percent for 2016 on top of a 5,000 won hike in security expenses. Pilots on standby would be subsidized for the expenses in waiting for domestic flights.

Labor talks had dragged on for the past fiscal years of 2015 and 2016 but made a breakthrough with the launch of a new union leadership in November last year.

The settlement raises prospects for this year’s negotiations, said a KAL official.

KAL is off to a smoother flight this year with the burden lifted from the labor dispute and exposure to its troubled affiliate Hanjin Shipping that was liquidated last year.

By Moon Ji-woong and Kim Hyo-jin

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]