Gulf Air agreement with union over employment conditions

The new structure for all technical and administrative staff in Bahrain has been introduced after a thorough review of the airline’s 30-year old compensation and benefits system.

Unveiling the new system to the employees today at the airline’s bi-annual town-hall meeting, Gulf Air Chief Executive Officer Mr. Samer Majali (pictured above) said, “While announcing our business strategy last November to make Gulf Air a commercially sustainable airline, we were not only looking at changing the way the business was run but also at realigning its manpower needs and introducing a new organizational structure to fit in with the strategy.”  

“During the past year, our progress has been very encouraging and we are on the right track; our seat factors and punctuality have improved, costs have come down and our losses have reduced. We brought in 12 new aircraft, opened 11 new destinations and closed down four non-viable routes, added regional jets to our network and are introducing state-of-the-art new products and services – from cabin interiors to food and onboard entertainment. Now the time has come for us to look at the other key element of our business- our people.”

He added, “Unfortunately very little has been done on this front in the past. With the exception of a review in 2007 to align pilots’ and cabin crew’s salaries and allowances, Gulf Air’s compensation and benefits system has not been updated in the last three decades; there was no professional performance appraisal system, no fair salary increases or adjustments in line with the market, there were anomalies in salaries vis-à-vis job descriptions. We found that 58% of our employees are currently paid within the standard market rate, 35% were below and 7% were above while allowances were not uniform and consistent across the organization .”

“The new compensation and benefits system removes these anomalies and inequalities and  harnesses the nation’s best employment practices and standards creating a fair and efficient working environment. Employee benefits have also been simplified and there is parity in allowances for male and female employees.”  

“The new system redefines staff responsibility and accountability introducing clear objectives and deliverables, measured by our-performance appraisal system to gauge productivity and efficiency, and to ensure performance-linked career progression. All future pay revisions will be considered once a year, using our compulsory performance-based merit reviews and subject to the commercial success of the airline.”

“Furthermore, I am pleased to announce that jointly with the Gulf Air Trade Union we will be issuing all Bahraini and GCC nationals with open-ended contracts. This is something the union has canvassed for and we believe will encourage productivity among employees.”

Mr. Majali continued, “For Gulf Air to become a commercially sustainable business we need to improve productivity and efficiency across the organization. Despite our financial challenges and fierce competitive market conditions, we are introducing this new compensation and benefits system to our staff because we care . All we need now is the fullest cooperation and the best performance from our employees, going the extra mile towards achieving sustainability and profitability.”

Mr. Majali concluded, “A sound business should be known both for its profitability as well as best employment and employee practices.   We have already proved our leadership in this front by achieving the highest nationalization levels in the region with our progressive Bahrainization program. With this new compensation and benefits structure, we are sending out a message that Gulf Air is not just a carrier of choice but also an employer of choice, committed to achieving sustainability and profitability at every level of the business.”

Mr. Ibrahim Al Watani, Chairman of the Gulf Air Trade Union expressed his delight at the revision of Gulf Air’s compensation and benefits system, “We are pleased with today’s announcement; this has come about as a result of the ongoing cooperation between Gulf Air senior management and the Gulf Air Trade Union.   The revised system will not only ensure fair and equitable compensation and benefits for all but also encourage every employee to perform with greater responsibility to make Gulf Air a successful national entity that we all can be proud of.”

“Gulf Air Trade Union is committed to championing employee rights though working closely with Gulf Air management for the best interest of every employee and the company as a whole,” he concluded.

For the project, Gulf Air hired a global management consultancy firm to benchmark job evaluations and compensation across the airline using a globally recognised standardised methodology. Currently over 8,000 organizations use this system for evaluations including some prominent business establishments in Bahrain such as ALBA, BAPCO, GPIC, BATELCO, and HSBC. The new system will be effective from December and covers all administrative and technical employees based in the company’s headquarters.