BUSTAMANTE Industrial Trade Union (BITU) president Kavan Gayle, says the delay in resolving current pay disputes at Air Jamaica could have serious implications for the planned divestment of the airline.

"We are concerned about the delays because they will only frustrate the workers and turn off investors. It is not good for the airline or its passengers, either," Gayle said after last Tuesday's postponement of the latest meeting scheduled with the management.

The meeting involving the unions representing the airline's ground and air crews - the BITU and the National Workers Union (NWU) - was planned to discuss cuts proposed by both sides to reduce spending and allow for a pay rise for the workers.

The unions wanted a price tag on both their cost-cutting recommendations as well as those proposed by the management.

The cost proposals followed a warning by minister without portfolio in the ministry of finance and the public service, Don Wehby, that any wage increase would have to be on the basis of the airline's ability to pay.

Air Jamaica lost US$173 million last year and seems headed in the same direction this year, which suggests that there is virtually no chance of it being able to finance new wage rates without huge cost cuts this year.

The government has set March 2009 as its deadline for divesting the struggling airline.

Gayle says that ground staff and flight attendants have been waiting since December 2006 and May 2007 respectively for pay increases.

"In our letter to the minister, we informed him that the workers are overburdened in the harsh economic conditions, with no pay increases going as far back as 2006," Gayle said. He added that the workers are accustomed to at least a cost of living adjustment in the circumstances.

"We have already made 35 suggestions for cost cutting and improving the standards. The company must now rationalise these measures and submit to us the associated cost savings," he said.

He said that both unions have agreed to the airline's suggestion to postpone the meeting which had been scheduled for last Tuesday to June 10, however, in a letter to the management yesterday they attached a number of conditions includiing that all proposals be fully covered by May 30; that the unions will be given copies of the airline's business plan as well as the International Finance Corporation's (FC) consultants report; the cost savings associated with the unions cost -cutting proposals; an outline of of the direction in which the management wants the airline to go; and confirmation of two additional dates, June 12 and 13, to meet in an effort to resolve the wage issues.

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