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SriLankan Chairman says union claims contradictory

2017-12-16 13:30:15
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SriLankan Airlines Chairman Ajith Dias yesterday said acommuniqué forwarded by the Alliance of Unions – SriLankan Airlines, was contradictory and not at all consistent with the assurances or the spirit of co-operation given at the awareness meeting, held between the airline and union representatives on December 6.

In a letter to the five unions, Mr. Dias said that “…at the meeting your confirmation and assurance to make it a success was very encouraging and we kept all staff members informed in this respect. However your subsequent letter to us and copied to the Press is contradictory and not at all consistent with the assurances or the spirit of co-operation given at the meeting.”

However, the Chairman also stated that, “irrespective of what is reported in the Press and Social media, we are confident that with the buy-in of a majority of our associates we can turn this Company around to a positive situation.”

The full letter is as follows

 

15th December 2017

To:

The President 
The Airline Pilots Guild of Sri Lanka
 
The President
Association of SriLankan Airlines Licensed Aircraft Engineers
 
The President
Executive Association of SriLankan Airlines BIA
 
The President
Flight Attendants Union
 
The President
SriLankan Airlines Aircraft Technicians Association
 

We refer to the recent Press and social media reports in respect of a communique forwarded by Alliance of Unions – SriLankan Airlines.

As most of you would know, representatives of the Unions were invited to an awareness meeting on the ‘way forward for the airline’ on 6th December 2017 where it was explained in detail the position in respect of the proposed restructuring program for SriLankan Airlines.   At the meeting your confirmation and assurance to make it a success was very encouraging and we kept all staff informed in this respect.   However your subsequent letter to us and copied to the Press is contradictory and not at all consistent with the assurances or the spirit of co-operation given at the Meeting.

The current Board of Directors took office in 2015 of a Company with considerable losses, aircraft leases at unworkable rates and unjustifiable and unproductive Collective Bargaining Agreements (CBAs).    In the last financial year, the SriLankan Airlines Group recorded a healthy operating profit and it is due to the provision of finance charges on the previous debts brought forward and the one-off costs paid for the cancellation of unnecessary A350 aircraft ordered by the previous Government and the cancellation of 600 flights due to the closure of the runway at BIA, that caused the final loss to the Group.

Owing to the Government of Sri Lanka’s financial and other constrains; the Board did not receive approval for implementation of the several restructuring plans put forward with the advice sought from the three foreign consultancy firms, who worked with the management and the Board on these initiatives.
 
With the pressures of international lending agencies towards re-organizing and restructuring several State Owned Enterprises, the Government of Sri Lanka has appointed an Officials Committee reporting to the Ministerial Committee under the leadership of the Hon. Prime Minister, to come up with the necessary plans to make the Company a viable Entity and thereafter, to find a suitable Partner to drive the airline to the next level.
 
We are working closely with the Officials Committee to see, how best the debt could be taken off from the Balance Sheet, receive jet fuel at international market prices and right-sizing the Company. The success in these areas will ensure a viable airline.
  
We have also clearly indicated, the Consultants and the Management will engage with the Unions in the implementation of the Plan on the Restructure of the Company.  
 
We are very mindful of the fact that due to the downturn of the global Airline Industry, there is little demand now especially in the Middle East for our trained and competent staff and as such the closure of the Airline is a concern to all and not in anybody’s interest.
 
Information requested by one of the Unions under the RIT Act cannot be disclosed due to its personal nature and as stipulated so in the Right to Information Act.  It is to be noted that the total remuneration of the Senior Management team of SriLankan Airlines amounts to less than 1% of the total wage cost of the Company.  SriLankan Airlines is a USD 950 MN (LKR 140 BN) Company in terms of revenue and needs highly skilled and experienced management, employed at market rates in keeping with specialized companies both here and abroad. The Chairman and the Directors are not paid a salary nor any allowances. 

A corporate restructure presents the company and employees with formidable challenges. It will be a difficult period but has to be done in the interest of the Airline and its employees. Irrespective of what is reported in the Press and Social media, we are confident that with the buy-in of a majority of our associates we can turn this Company around to a positive situation.
 

Yours faithfully,

 
A.N. Dias
Chairman 
 
cc.          

H.E Maithripala Sirisena – President of Democratic Socialist Republic of SriLanka
Hon. Ranil Wickremesinghe – Prime Minister of Democratic Socialist Republic of
Sri Lanka
Hon. Mangala Samaraweera – Minister of Finance and Mass Media
Hon. Kabir Hashim – Minister of Public Enterprise Development 
Hon. (Dr.) Sarath Amunugama – Minister of Special Assignments
Hon. Nimal Siripala de Silva – Minister of Transport and Civil Aviation
Hon. Malik Samarawickrema – Minister of Development Strategies and 
International Trade
Dr. R. H. Samaratunga – Secretary to the Ministry of Treasury
Mr. Ravindra Hewavitharana – Secretary, Ministry of Public Enterprise Development
Mr. Thilan Wijesinghe
Mr. Mano Tittawela


  Comments - 6

  • Vernon Saturday, 16 December 2017 15:57

    It is correct that there is a need for "highly skilled and experienced management". But are you and your CEO in that category? Certainly not. Your CEO is just a MUTT in management although a pilot of another airline.

    Reply : 3       33

    Docku Saturday, 16 December 2017 16:28

    Finally, we get to see the real side of the the unions wheo were sleeping with former regime and got the goodies.Truth is a better pill, the CBAs are way off market, that is the unions are attacking. Better close and start again like a private company and not be held hostage to SLNSS and pilots guild.

    Reply : 21       9

    Kolitha Herath Saturday, 16 December 2017 16:42

    If this organisation is to be resurrected, I think this Board should be sacked and a new one appointed giving due recognition to experience in management, engineering and above all integrity.

    Reply : 1       37

    Dhammika Sunday, 17 December 2017 12:13

    Will it be a RITE ROYAL RUMBLE .

    Reply : 0       6

    Dee Sunday, 17 December 2017 18:34

    Get rid of these unions if you want Srilankan to fly again.

    Reply : 4       4

    Jo Sunday, 17 December 2017 18:52

    Yes, this airline needs skilled and experienced managers. Very true! Well, maybe it is different in the rest of the world, but here systematically ruining a company in the manner of this „fantastic“ Board and its ludicrous CEO is rather a signal of incompetence, mismanagement and corruption.

    Reply : 1       7

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