Spain's Government, which imposed a 15-day state of alert to end a wildcat strike by air traffic controllers, stated on 06-Dec-2010 it may extend the measure to prevent any further disruptions (AFP, 06-Dec-2010). The government reportedly plans to keep the decree in force for two months to provide time to prepare military controllers that could replace the civilian ones if necessary. Services began to return to normal on 06-Dec-2010 after the government declared the state of emergency which placed the controllers under military command. AENA has opened disciplinary proceedings against 442 controllers over the incident. It is estimated the strike could cost the country's tourism industry EUR400 million (USD532 million) in lost revenue. The government had significantly reduced their overtime hours and pay rates in Feb-2010 to trim incomes which rose as high as 600,000 euros p/a. Controllers commenced strike action on 03-Dec-2010 in reaction against a government ruling that their maximum work hours of 1,670 hours a year - 32 hours a week - exclude non-aeronautical work. Approximately 96% of the country's controllers were working on 06-Dec-2010. [more - IFATCA] [more - Jet2]
Spain plans to extend decree over ATM strike
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Europe's aviation strike spike could signal a cyclical peak - with downturn to follow
One swallow does not make a spring and nor does a rash of aviation strike news guarantee a turning point for the aviation industry. But the signs are ominous. In the month of Jun-2016 (to 20-Jun-2016), there have been 136 articles on CAPA's website mentioning the word 'strike'. This compares with 81 for the first 20 days of Jun-2015. For 2016 so far (1-Jan-2016 to 20-Jun-2016), the 's' word has occurred in 594 articles – about 20% more than in the same period in each of the past two years. If this rate continues, 2016 could be the biggest year for strike-related articles since before the global financial crisis.
The vast majority of the Jun-2016 articles – 80% – relate to Europe. A significant source is air traffic control disputes, particularly French ATC. There have also been strikes and/or strike threats involving airport workers and ground handlers. Among European airlines, Air France has generated the most coverage for its ongoing dispute with its pilots, and it may also face a cabin crew strike. Lufthansa has not yet faced a strike by its employees this year, but has not yet reached new agreements with pilots or cabin crew after industrial action last year.
History tells us that labour's demands grow as profits rise. The apparent increase in industrial action this year could be a signal of an approaching peak in the airline profit cycle. There are other causes of unrest, such as impending French labour legislation, but the correlation reflects some history.
Airline strikes: 2016 a peak year for Europe's legacy airlines. Wakeup time, as LCCs pick them off
Pilot strikes at Lufthansa. Again. A strike ballot among British Airways cabin crew. A guilty verdict for Air France workers who assaulted an executive during a union protest. These were all headlines in late Nov-2016, following Air France pilot and cabin crew strikes in summer 2016. Labour relations at Europe's three biggest legacy airline groups are an ongoing challenge.
A CAPA report in Jun-2016 highlighted the growing number of articles on CAPA's website mentioning the word 'strike'. It raised the possibility that if the rate continued through the year, 2016 could be the biggest year for strike-related articles since before the global financial crisis. With a little under a month still to go, this year has already comfortably passed this milestone.
To a large extent labour unrest grows as airline industry profits increase. However, rather than hoping for an industry downturn to reverse the rise in the cycle of strikes, airline CEOs are talking tough – a line long taken by IAG's Willie Walsh. Lufthansa's Carsten Spohr has said that taking on the pilots is "about the future of Lufthansa", noting that it has “no chance of survival" if it gives in to pay demands (Bloomberg, 24-Nov-2016).