Laxintl From United States of America, joined May 2000, 29009 posts, RR: 50 Posted (8 years 8 months 4 weeks 23 hours ago) and read 2573 times:
Mexicana had been strugling to gain $25million in concenssions from its hold out flight attendant union since last year.
Now with having won via arbitration, MX should be clear to place its long planned 40 airplane order which had been on hold pending concessions from all its unions.
Quote: A Decision Is Handed Down on the Mexicana-ASSA Dispute
Wednesday August 8
MEXICO CITY, Aug. 8 /PRNewswire/ -- Mexicana Airlines today was officially notified by the Federal Settlement and Arbitration Board (JFCA) of the decision handed down vis-a-vis the collective dispute of an economic nature filed by the company with the intent on modifying certain clauses of its collective labor agreement with the Flight Attendants Trade Union (ASSA).
According to the notification, the decision provides for the amendment of several contractual clauses, which will enable the airline to make annual savings of approximately US$ 25 million.
Modifications to the company's collective labor agreement with flight attendants are an important component in the streamlining of Mexicana's cost structure and will complement previous agreements reached with its pilots, ground personnel and non-unionized employees, along with the comprehensive strategy first implemented more than a year ago designed to boost productivity.
"This decision is yet another step towards bringing the airline back to financial stability, and as such, obliges us to continue supporting the restructuring process that is so important for the survival of our company," said Mexicana CEO Manuel Borja.
Hi Laxintl, to clarify this issue, be advised that this controversy was not settled via a regular (i.e., private) arbitrator or arbitral tribunal(whether ad hoc or administered by a chamber of commerce or similar association), but rather through a governmental court-like authority. The thing is that in Mexico labor claims and disputes are not resolved by a court of law (like commercial disputes, divorces, bankruptcies, etcetera) but rather by "boards" that are part of the executive branch (as opposed to the judiciary). These boards (as described in your quoted article) are, literally translated, called conciliation and arbitration boards. All this boring legal explanation is relevant because, whereas regular (i.e., private) arbitrations are definitive and the arbitral awards may not be appealed before a court of law (unless due process formalities were not followed and/or the definitive award contravenes public policy), the rulings of conciliation and arbitration boards may be objected to by the loser through an amparo remedy, which basically consists of asking a federal court to examine the entire proceedings and determine whether one or more constitutional rights of the amparo plaintiff were violated by the conciliation and arbitration board. In this sense, the union may still (and have threatened to) bring an amparo claim against the resolution that favored MX. In view of the foregoing, I think MX would be very wise to wait a little longer before placing new orders to see if the union is going to continue their battle or not.
I'd say however if the FA union appeals this they will look even worse compared to Mexicana's other unions which came up with consensual deals with the company to help efficiency and save money.
Basically the FA's union ends up hijacking the futures of thousands of other employees while company is burdened with higher cost and further delays its modernisation and growth plans.
By the way, to put this in perspective, I recall reading an analysis of Mexicana's FA labor contract that showed they had the lowest productivity levels of Mexican carriers, while having one of the highest wage structures.
From the desert to the sea, to all of Southern California
Ghost77 From Mexico, joined Mar 2000, 5289 posts, RR: 48
Reply 7, posted (8 years 8 months 4 weeks 16 hours ago) and read 2259 times:
Reforma claims MX had a 60M USD loss on 1/2Q07 which is really serious. Mainly all money lost is from the 1Q07 and losses had been reduced this 2Q07. QA is making profits.
Its first time in Mexico's history a company uses the JFCA to settle an agreement with their employee's. At the end of the day JFC was biased to MX, it was said, they were going to determine a 15M USD in savings but they went all the way to 25M to please MX.
If in-flight service has been badly affected since Cintra's sale... expect all MX FA's to don't give a rats.... doing their job.
While top notch companies from Europe, Asia, Latins and some Middle East do their best efforts to have happy FA's crews and well paid in order to give the best service and have happy customers MX is doing the other way round and wrong!!!!
I don't see any order coming soon. MX is in search of a 3rd B767 only.
Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!