KQ says deal with pilots allows transfer to rival firms

Kenya Airways is relying on a clause in its collective bargaining agreement (CBA) with pilots to justify a planned transfer of close to 40 of them to its rival, Ethiopian Airlines.

KQ, as the national carrier is known by its international code, says a collective bargaining agreement the pilots assented to four years ago gives it leeway to redeploy them to other airlines, including those based abroad.

The national carrier is seeking to “loan” 21 captains and 18 first officers to ET for three years, arguing that they are underutilised after KQ sold most of its long-haul planes and leased out four others.

“The Company (KQ) may from time to time require an employee to serve any civil operator or its subsidiary or associated companies maintaining required standards of maintenance and operations…,” states Clause 5 of the agreement that Kenya Airways is relying on.

The pilots have however strongly opposed the planned transfer, and have also differed with KQ on interpretation of the provisions of the collective bargaining agreement.

The airline says it is “in consultations” with the Kenya Airline Pilots Association (Kalpa) on the modalities of the transfer, adding that Rwandair and the Emirates have also expressed interest in absorbing some of KQ’s pilots.

READ: KQ ditches buying Dreamliners in favour of leasing the planes

The national carrier has leased two Boeings 787s and two Boeing 777-300 for three years, same as the period in which the pilots are meant to be redeployed, indicating that the affected pilots stand to be recalled after the period lapses.

Kalpa has, however, rebutted KQ’s argument, stating that a different clause in the same agreement precludes the airline from dispatching them to competitor airlines like ET.

Captain Paul Muraguri, the Kalpa chief executive, says Clause 24 of the agreement only allows KQ to transfer its pilots to its “own operations and not to other airlines.” 

“ET is not a KQ company; you cannot redeploy somebody to a company you do not own or have any association to,” Captain Muraguri told the Business Daily in a telephone interview.

“We have not agreed to the management’s proposal and there is no reason for us to do so.”

KQ however says that Clause 24 “only deals with transfers and postings within the organisation”, a stance which now leaves the two parties squarely on two opposing camps. This planned transfer, which is separate from the upcoming staff retrenchment at KQ, was communicated to the affected pilots in a letter authored by Latiffa Cherono Murage, KQ’s Acting Head of HR Management Relationship.

“KQ has secured a placement for you in ET,” Ms Murage said in the letter seen by Business Daily.

“While doing this, the company did its best to negotiate with ET the most favourable terms and conditions possible, that on a net-net comparable basis positively meet the compensation you currently receive from KQ.”

The airline told the Business Daily on Friday that upon reaching a consensus with the pilots, they will work with the “receiving airlines on the relocation modalities including taking care of the relocation costs of the pilots.”

This standoff is the latest one to hit the KQ management. Earlier this year, Kalpa had threatened to call a strike if the airline’s management does not quit over the losses that the NSE-listed company posted has been recording.

In March last year, the airline once again found itself in Kalpa’s crosshairs after it retired 10 pilots aged between 62 and 65 years.