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The Thai Airways International labour union is threatening protest action after the board decided against awarding staff any pay increases.

Jamsri: Demands pay hikes despite losses

The national carrier said oil price fluctuations and the economic downturn had hurt its finances, so staff would not be given a pay rise for the time being. The board also decided not to pay any bonuses.

The THAI board has set a target to cut spending by 3-10%, or 6 billion to 20 billion baht, within three years under its business rehabilitation plan.

But the union said THAI's poor financial performance was the result of poor management, not the fault of staff, who should not be penalised. The union threatened to resort to "every means" necessary to pressure management to grant salary hikes, saying staff are simply protecting their rights.

Union leader Jamsri Sukchotrat said the board's decision not to award pay increases was contrary to the cabinet's wishes.

Mrs Jamsri cited a cabinet resolution which obliged state enterprises to approve pay rises for staff regardless of whether the enterprises make a profit.

She said that when state enterprises make a loss, they still have to consider a pay rise of up to 6.5% of their salary budget.

Mrs Jamsri said the union would petition THAI acting president Narongsak Sangapong to protest against the board's decision.

She said ACM Narongsak had told the union that a pay rise would be considered when the company's financial situation returned to normal.

"We don't know when that will be. This is unfair to the staff," she said.

Mrs Jamsri also called on the board and management to explain why the company still planned to buy aircraft and make investments despite the losses.

ACM Narongsak said he had failed to persuade the board to include in its decision a pledge to consider a 6.5% salary hike when the company's financial situation returned to normal.

He said most board members disagreed with his suggestion to include the pledge, partly out of concern about the public reaction.

Pay rises are normally considered by the airline's management, while bonuses are considered by the board.

A Transport Ministry source said Mrs Jamsri sought a meeting with Transport Minister Sopon Zarum after her talks with ACM Narongsak had failed to yield fruit.

However, Mr Sopon did not want to get involved in the matter as the ministry, a shareholder in the airline, was considering restructuring the company in an attempt to tackle its severe financial problems.