Home Aviation Unions Kick as Aero Plans to Reduce Workforce by 40%

Unions Kick as Aero Plans to Reduce Workforce by 40%

by Aviation Media

Aero Contractors Managing Director, Captain Abdullahi Mahmood

Aviation unions have threatened to imperil Aero Contractors operations over the allegation that the management of the airline plans to sack 40 per cent of the workforce.

The National Union of Air Transport Employees (NUATE) and the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) accused aero management of concluding plans to reduce the staff strength of the company without considering redundancy or any other alternative to outright sack.

But the Aero management in reaction to the allegation, it as pure mischief “that when things are rosy the unions keep quiet, but when challenges occur they quickly run around with wild allegations and threats.”

In a press conference organised by the General Secretary NUATE Comrade Ocheme ABA and Deputy General Secretary ATSSSAN, Comrade Frances Akinjole the two unions appealed to the National Assembly, Minister’s of Aviation and Labour & Employment to initiate an intervention that could save both Aero Contractors and Arik Air, which are under the receivership of Asset Management Corporation of Nigeria (AMCON).

The unions chided the management of Aero for admitting that the airline has old aircraft, noting that the Aero has maintenance facility; so identifying the aircraft as old was immaterial.

They said that the problem of Aero started with a phony aircraft lease, where it acquired two aircraft, which it operated at a loss.

The unions frowned at the seconding of Mr. Charles Johnson Arumemi from Arik Air to Aero Contractors, alleging that as commercial manager Arumemi drew up a schedule granting the leased aircraft all Aero Contractors juicy routes, which grossly reduced Aero’s revenue and leading to its inability to pay staff for about three months.

Comrade Aba said, “The CEO’s assertion that Aero’s planes are too old to fly is completely false, even if aided by internal misinformation. The fact as we know it is that Aero operates the B737 Classic generation, the oldest of which just clocked 30years.

“This class of aircraft are able to operate up to 85,000 cycles, or 100,000 flight hours as approved by the manufacturer, Boeing. None of these aircraft in Aero’s fleet has operated up to half of the approved figures. “We stand to be proved wrong. While it is true that older aircraft do have higher maintenance costs, it must be borne in mind that the airline owns an approved Maintenance & Repair Organisation (MRO) with elite engineers in its fold. Till date, there is no report from the MRO or the Nigerian Civil Aviation Authority (NCAA) that any aircraft operated by Aero is too old to be maintained or to fly.”

On the alleged phony lease, Aba said, “For the period that the lease lasted, the entire Aero Contractors was essentially working for House of 5A’s (the leasing company), as the lessor was making more money than the airline itself.

“No wonder the airline ran itself into deep financial crisis and began to owe salaries unprecedentedly. But for the intervention of the unions, which threatened to direct workers to withdraw services to the leased aircraft, Aero would still have been under the bondage of the House of 5A’s contract. So, who arranged such a murky lease? And was it a deliberate ploy to bring the airline down?” he asked.

The unions said they were exposing the ills in the airline for concerned authorities to know; so that when they take action the unions would not be told that it was unexpected and without consultation as already they have had course to write the management of Aero on these issues stated but they did not get response from the airline.

Aero management further explained that the allegations about the Managing Director on High 5A’s and Charles Arumemi Johnson were unfounded.

“Charles, is a very competent staff of Arik Air owned by AMCON, which equally owns Aero Contractors; therefore there is no conflict of interest. He is instrument to the recently launched Aero portal which has given the site a face lift and made more user friendly compared to the previous website.

“On the High 5A’s, every partnership was done with the aim of improving the revenues of the airline, particularly in relation to our unserviceable equipment and ensuring standard customer service. The question is what was our revenue before, during and after the exit of High 5As? They should please respond.

“We are conscious of the challenges we are facing and have been prudent with our expenses, and doing our best to take care of staff welfare. We urge the staff and unions to desist from this attitude and support the company to overcome its challenges,” Aero Contractors said.

Aero aircraft

Aero aircraft

It also noted that the current management “decided to create the four Strategic Business Units (SBUs): Maintenance Repair Overhaul (MRO), Aviation Training Organisation (ATO), Airline Operation and Rotary Wing, to enhance efficiency and profitability” of the company.

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