Planned EVA and rail strikes cancelled
The Taiwan Railway Union has cancelled plans to take strike action during the Lunar New Year holiday. The union last month members had voted in December to walk off the job for four days of legal leave from 9-12 February over unfair pay.
A petition signed by more than 50% of train conductors and employees responsible for station and train operations at the time demanded that the Taiwan Railway Corporation come up with a comprehensive employee retention programme. The proposal included providing a higher on-call allowance for train conductors.
However, the union says it has now chosen to scrap plans for the strike to avoid damaging "people's trust in domestic transportation." The union says it has also reached a consensus with the railway company on raising on-call allowances for train conductors from NT$88 per hour to the hourly minimum wage of NT$183.
Meanwhile the share price of EVA Air stock rose nearly 5% on Taiwan stock exchange following news of the strike cancellation yesterday. The Taoyuan Pilot Union announced the cancellation of the strike, confirming a four-point agreement with EVA Air, including a salary increase for pilot captains and other adjustments.
Travel agency stocks, including Lion Travel, Phoenix Tours, and LifeTour, also rebounded by around 2%.
The agreement ensures no strikes during the Chinese New Year and Tomb Sweeping Festival holidays. The business opportunities during the peak Lunar New Year season are expected to proceed normally, driving the EVA Air stock price surge.
As for whether EVA Air's compromise on salaries will lead to a squeeze on future profit margins, the airline only stated that it was to protect the rights and interests of passengers.