Statistics and Lies

The first thing I’ll comment about is the fact you can do a lot with facts and figures; the article in the Independent last week which eluded that Irish ATCOs as the highest paid in the world, except for our Spanish colleagues.  Despite this being false; the article also failed to consider a range of other issues; these may include cost of living, taxes paid against wage earned, average wages in the particular country, whether the ANSP is a for profit ‘privatised’ organisation or government-owned cost recovery organisation, semi-state etc.  The method in which employees are paid has a direct link with the manner in which airlines are charged.

See this report for a benchmark of costs in Europe for ATCOs and ANSPs and airways charges.

Click to access ACE_2007_Benchmarking_Report.pdf

Although the data for benchmarking is going back to the 2007 (published in May 2009); as these reports take significant time to produce.  This is however the most accurate comparative data available at present.  The next set of data should be available in 5 months or so.

The total money spent in providing ATC services in Ireland in 2007 was €75 per hour. The European average is €93 per hour.

This €75 per hour isn’t the direct cost or hourly rate of the ATCO, but the total costs, including training time for new projects or new positions, instructors working short-term in the school, project work, holiday time, time retraining after incidents or maternity leave etc. It is calculated by adding the total wages costs (including pension allocations) of all ATCOs and then dividing this by the amount of hours controllers are active in an operational positions.  Costs vs time actually working.

Compare this to Spain where the (alleged) most ‘expensive ATCOs’ in Europe reside you will see the similar cost of €89 per hour.  In Germany this cost is €124 per hour. At UK NATS the cost is €95 per hour. In Switzerland €107 per hour. At the Eurocontrol facility in Maastricht the cost per hour is €132 per hour.

If you look at cost of Airways charges per hour Ireland averaged at €298 per hour. Spain is €576 per hour, Germany €418 per hour, UK NATS the cost is €426 per hour, Switzerland €439 per hour and Maastricht costs are €210 per hour.
In 2007 Ireland accounts for 1.4% of European Air Traffic.  There are 230 operational ATCOs in Ireland which is 1.37% of all ATCOs in Europe (16701 Operational ATCOs).

The IAA, in 2007, had 448 total staff, or 0.79% of the total in of staff employed by European ANSPs (56737).
Irish ATCOs spend an average of 1631 hours per annum controlling traffic; compared to the European average of 1471 hours per annum. If you can grasp on thing from this article; Irish ATCOs are extremely productive and cost-effective.

And finally a quote:  “The global recession, accompanied by high levels of unemployment, hit air travel demand especially hard in 2009 but the declines appear to be bottoming out,” said ATA Chief Executive James May. “Anecdotal evidence suggests a positive revenue trajectory in 2010.”

Labour Court Discussions Friday 22 Jan 2010

LabourCourt decision

On Friday the Labour Court heard extensive talks about the dispute.

Despite the IAA claiming that this dispute was about a 6% pay claim, to be added to ‘outrageous salaries’ on top of ‘outrageous working conditions’ and ATCOs not willing to contribute to the ‘most generous pension scheme in Ireland’; the discussions in the Court were solely about the dispute about change as alleged by IMPACT all along; that the process of change ie project work required discussion.  That a bone-fide dispute exists between the parties.

The union were seeking those discussions which is why they imposed a ban on members working on projects.  The IAA took IMPACT to the LRC  last Thursday week, in trying to remove the ban; this should have led to full and frank discussion; alas the IAA chose to withdraw from those talks.  The IAA later escalated the dispute by suspending ATCOs refusing to work on the projects, last Tuesday.  The union took immediate action to the suspensions by calling a stop work meeting on the Wednesday.

The stop work last Wednesday was about restoring the suspended ATCOs to the payroll.  The claims made by the IAA that it was about something else were proven false in Court.  The Court agreed that this dispute was about change; whether it be ‘normal on-going change’ or ‘significant change’ is the matter still outstanding.

This matter will now be dealt with by the Labour Court on Tuesday 26 Jan in the am.  This will be binding arbitration.  This is the first time that the IAA has agreed to be bound by the Labour Court in over 10 years.  This doesn’t mean that IMPACT representing the ATCOs will automatically win; far from it. But we will have our day in Court, which is all we ever wanted.

The Labour Court will hear the 6% T16 Claim on Tuesday 26 in the pm as originally scheduled in August 09.  See, this stop work action wasn’t about a pay claim. The independent LRC appointed assessor has already found that it can be paid, every worker at the IAA expects it will be paid and back dated.

What just happened?

Today’s action was not about 6% – there’s a Labour Court hearing about the 6% next week; repeat this is not about a 6% pay claim.

This is about 14 ATCOs suspended without pay.  We have asked the IAA, as has the Labour Court, to reinstate the ATCOs and 286 ATCOs would resume normal work and no closures would be needed.  The IAA has refused the Labour Courts offer on the basis that the controllers would have to work as directed; which would be unacceptable if they then also refused to talk; which the IAA has no intent on doing.

The ATCOs won’t return to work as directed against the IMPACT directive, made to encourage discussion; the IAA won’t talk.

The IMPACT directive issued in response to changed work practices, new procedures and concerns about safety.  The directive applied from 1 January 2010.  Some of these projects such as COOPANS is a long-term project and some ATCOs have been working on this project for over 12 months; however the time to talk about the effect of this new technology is upon us.  There was a very unfruitful LRC last Thursday about project work and the directive effecting it; the IAA representatives told the LRC they had no authority to act, so why were they there?

The IAA suspended 14 controllers without following their own disciplinary processes; no warnings verbal or otherwise were issued.   Today’s meeting was all about why this has happened and the need to get the 14 ATCOs (and the next wave due next week, aren’t suspended) back on the payroll first.

We would also like the IAA to talk to us about the changes; nothing more.

At the meeting I attended today there was unanimous support for further action for only one reason, to get the suspended ATCOs back on the books; so unless the IAA steps back and changes its decision it may get much worse than today’s 4 hour stoppage.

Repeat today’s stoppage was nothing to do with the 6% T16 agreement, nor the proposed changes to the pension scheme; those events are coming up soon though.

The second effort is pure spin…

http://www.iaa.ie/index.jsp?p=93&n=96&a=829

19 January 2010: The Irish Aviation Authority, (IAA) had no alternative today (Tuesday 19th January 2010) but to suspend Air Traffic Control Officers (ATCOs) who refuse to carry out normal assigned duties until their demands have been met.

You had the choice of not suspending the controllers and thus avoiding the dispute in full.

Since 1st January the ATCOs union, IMPACT has instructed controllers not to co-operate with a number of new technology projects unless the Authority commits to payment for these changes.  However, the real agenda is:
Forcing the immediate payment of a 6% pay increase agreed as part of the last partnership agreement – Towards 2016;

No, this is not the “real agenda”. The T16 pay increases have been independently assessed and the recommendation has been the IAA can afford the increase without any need to pass this on to the airline industry.  But this is not the real issue of the dispute, this issue has been ongoing for 18 months; it is complete bollix to link T16 pay increase to this dispute – there are facts and there’s spin!

Avoiding the payment of a contribution towards their pensions in line with all other public sector staff. ATCOs pay no pension contribution and the Authority pays a contribution of 30.5% of salary.

Nobody has said no to talking about making contributions to our pensions.  This again is pure spin.  The facts remain that illegal unilateral change will be implemented without any consultation with staff or unions.  The presentation was a briefing and there have been no concessions given and not one staff member has any ability to talk to any board member or manager without a prospect of being told “that is how it is”.  A contribution is only one of the changes.  Two other significant elements not even discussed are the increase in retirement age and the capping on pension rises in the future at CPI or 3% which ever is the lower; potentially a significant financial penalty without any justification or direct cost savings to the employer. You also announced that no employee will be entitled to a salary increment for 2 years.

Flights at all airports are likely to be disrupted by this dispute.  The IAA apologies to all members of the travelling public and to the airlines for the disruption that this action by ATCOs will cause.  Passengers are advised to contact their airline before setting out.

The IAA can reverse its decision to suspend 15 controllers and return business to normal.

Pay Increase of 6%

The first issue, an increase of 6%:  An increase of 6% to would cost the IAA an additional € 6 million each year.   This cost would have to be passed to the airlines who fund the IAA – the Authority receives no State funding.  The airlines cannot afford to pay.

This is a lie; the independent assessment has determined that the IAA can easily afford to pay the 6%, but this is not the real dispute and you know it.

“The aviation industry is on its knees at the moment,” says Liam Kavanagh, Director of Human Resources, IAA.  “The ailing airlines, including Aer Lingus, Cityjet, Aer Arann – cannot afford to take on additional costs.  Meeting the 6% pay demand to 300 Air Traffic Controllers would cost an additional € 6 million per year.  This would have to be passed on in its entirety to the airlines since we in the IAA receive no funding from Government.”

Is 6% really €20,000 each? ie €6M divided by 300; wow didn’t realise that we averaged out at €335K each (including on costs) think I might need to check my pay-slip.   The total cost to pay controllers 6% is by my calculations €2.1M, this includes all on costs.  There is a massive gap between €6M and €2.1M.  Who is spinning this?  How much will a 4 hour stoppage cost the industry?  More than the true total annual cost?

The ATCOs play a vital role in the safety of air transport and are currently highly paid, according to the IAA.  No pay cuts are proposed.  No job losses are envisaged in 2010.

Because you have overseas contractors here to fill holes in your rosters that your poor  HR planners missed. The IAA is short of permanent ATCs there would be no way jobs could be cut without service reductions.

“ATCOs are significantly well paid compared to other public sector workers such as teachers, guards and nurses, all of whom also do essential work,” says Liam Kavanagh.

So?  Nobody is saying otherwise.  How does an Irish ATC compare on a global scale? What about within Europe?  Would it be true that Irish ATC’s are among the lowest paid in Europe?

“The salary for an ATCO is approximately €115K.  If you factor in the pension contribution and the PRSI contribution that the IAA makes for each person, their total package comes to almost  €160K.  They do vital work and they are very well paid for that work.   This is the wrong time to be looking for a pay increase of 6%.  We have told the ATCOs we will be happy to review this in 2012.”

But wait you just said above that 6% x 300 would cost €6M per annum. €160K x 6% x 300 is only €2.88M; well which is it? This also assumes everyone is on the top salary, which is clearly not the case, some controllers who rated recently are on closer to €55K.

There is no recognition that the IAA is now profitable (despite only being a cost recovery organisation) in its worst year since 2007, what will the 2010 profit be, what about 2011?

Pension Contribution

The second issue, pension contribution:  The IAA provides a defined benefits scheme for ATCOs.

“A defined benefits scheme is a Rolls Royce pension, and not many people are lucky enough to have such a pension,” says Liam Kavanagh.  “ATCOs make no contribution to their pension. The Authority, meanwhile, makes a contribution of 30.5% of salary for each person.  We are asking them to make a contribution, in line with all of their colleagues in the public sector who now pay a pension levy.  They do not want to make a contribution to their own pensions.

See above, nobody has said no to talks except the IAA; not all employees are on this “Rolls Royce” pension plan.  The main points are stated above:

• Increased retirement age; without negotiation.
• Reduced pension earnings; without negotiation.
• No salary increments; without negotiation.
• Forced contribution; without negotiation.

The IAA is asking ATCOs to make this contribution in line with all other public sector staff, and because the pension fund is in deficit to a total of €234 million.

Why is deficit so large, what mistakes have management made with this fund?  Has it been funded correctly in the past? Has the IAA redistributed funds to profits and capex rather than pension funds?

Need for Ongoing Change

Ongoing change is a necessity in the dynamic aviation industry.

“We need to constantly review and update our systems,” says Liam Kavanagh.  “And we cannot afford to make a payment to people every time we upgrade a system.  We are not talking revolutionary change – sometimes the change can be the equivalent of upgrading from Microsoft XP to Microsoft Vista.  That level of ongoing change is vital to ensure that we are being effective.”

You initiated unilateral changes without negotiation, why would you not expect a fight? Controllers do little else than manage changes, formal withdrawal from the projects was a direct response to unilateral non negotiated changes imposed by the IAA, effective 1 Feb 2010.

We would ask IMPACT to desist from this action and to return to normal work.  We can resolve all of these issues without having an impact on airlines and on the travelling public.

We would ask the employer to back off and come to the negotiating table without a naked flame to our pensions and pay packets and honestly lay the numbers on the table to discuss openly, without the need for media spin. We want them to talk to us directly not lie at us through the media.

The first shot fired

http://www.iaa.ie/index.jsp?p=93&n=96&a=828

18 January 2010: The Irish Aviation Authority has been involved in talks with air traffic controller union IMPACT for the past number of weeks over a number of issues. These issues have included a demand for a pay increase. The Authority hopes common sense will prevail and considers any disruption to air traffic control services in this day and age is wholly unacceptable.

Let me look at that text.

The Irish Aviation Authority has been involved in talks with air traffic controller union IMPACT for the past number of weeks over a number of issues.

The IAA haven’t wanted to talk to IMPACT or any other union about anything; briefings do not represent consultation.  The staff briefings about the IAA’s unilateral decision to increase retirement ages, reduce pension benefits, make staff give more to pensions (after reducing their accumulated value) and withholding all increment advances, were a complete waste of everyone’s time and money.

All counter offers or comments from staff and unions were rejected in full “as this is what we have decided to do”.  Most of these ‘proposed’ changes have effectively nil short-term impact on the “bottom line” to claim this is a direct response to the current economic climate and the state of the industry is a complete fabrication of the evidence.

These issues have included a demand for a pay increase.

Hardly a ‘demand’, the recent discussions have brought up the towards 2016 “pay agreement”; where the processes of delaying and not paying the agreed outcomes have effectively been exhausted in full by the IAA.  The independent assessor has said the IAA can afford to pay the T16 agreement rises; the IAA has done everything possible to avoid its obligations to its staff. It should also be widely known that these T16 discussions were scheduled for many months before the attack that the IAA has made.

There has been no suggestion that there be unilateral wage advancements.  The staff have met every element of the T16 agreement, they have improved productivity enormously through new procedures such as ENSURE, where airlines are saving significant fuel burn and time in transit through Irish administered airspace.

The Authority hopes common sense will prevail and considers any disruption to air traffic control services in this day and age is wholly unacceptable.

We too hope that common sense will prevail. Eamonn, his cronies and sycophants will not prevail in taking illegal industrial action. The staff will unite and fight the common aggressor, the IAA.

The IAA must not withhold any salary increment nor change pension entitlements without proper amendments to legislation, or obtaining ministerial approval for those employed post semi-state.  If the IAA does not get these amendments or get the approvals then there is only one party taking illegal action and that party is the IAA.

Unfortunately Eamonn, if imposing traffic mitigation, delays or airspace closures is the only way you to get you to step off your “not so high horse” and listen to your staff then so be it; the ball is on your half of the pitch; play nicely or you can expect a significant IMPACT  from us and the other unions involved.

Pole

24 hours of voting the results are clear

Voting now closed

Why retiring older is a bad idea

Profits – schmofits

Over the past 5 years the IAA has reported huge annual profits.

In recent times the IAA has never recorded less than 12M annual after tax profit totalling over the last five reports to be no less than 66.5M.

There is reportedly a crisis with the pension fund. Why? In 2007 the total reported net liabilities of the pension fund were just over 56M.

The company recently published that the pension fund is some 248M in debt.  200M extra in debt in 2 years, whilst still running a profit, is this an accounting trick? Who is to blame, are they still employed? There should be a national enquiry to find out who is responsible.  She/Him/they and their management team should all be sacked if it’s true that they squandered 200M in just 2 years; surely the buck stops with the CEO?

CEO – he should go, come on sing with me now, CEO – he should go!

Why Blog?

I will be providing regular feedback during the dispute between IMPACT representing the ATCs and the Irish Aviation Authority (IAA).

Feel free at anytime to drop me an email or post a comment on any post I make.

Needless to say that I am very aggrieved that it has come to this:

The IAA have unilaterally taken it upon themselves to effectively rob ATCs and other employees of their hard fought conditions of employment, entitlements and salaries, whilst a valid agreement is in place without any attempt to negotiate with staff , or explain why they are doing this.

To blame the current economic conditions is at best delusional, to deliberately un-fund liabilities or increase them when cash flows were low was at best foolish.  Why should the employees have to pay for gross miss-management?  Why should these temporary funding issues have a 60+ year life-cycle?

Why can’t the IAA wait until the agreement is next negotiated to attempt to change our employment conditions, why is it so urgent now, when in essence the short term savings are negligible, but they have a massive long term effect on the employees without generating one cent of savings for the industry it serves or the community?  It can be argued that this has a significant negative flow on the community at large.

Why is the IAA doing this?  The 64M$$$ question.