"Flight Allowances Should Be Included in Ordinary Wages"
Korean Air Pilots' Union Announces Lawsuit
Jin Air to Include Bonuses in Ordinary Wages Within the Year
Airline pilots have initiated legal action to include flight allowances in their ordinary wages. Low-cost carriers (LCCs) are also expected to move toward changing their ordinary wage regulations. As Korean Air has finalized a wage system overhaul that expands the scope of ordinary wages for the first time in 20 years, this trend is spreading across the aviation industry.
According to the aviation industry on June 30, the Korean Air pilots' union is currently accepting applications from its members to file a lawsuit seeking to include flight allowances, which are paid according to flight hours, in ordinary wages. Internally, the union has also begun the process of retaining a law firm.
A union official stated, "The pilot wage system differs from that of general employees, so we discussed the issue of flight allowances with management, but could not reach an agreement, which led us to prepare for a lawsuit," adding, "We intend to file the lawsuit before the current executive board's term ends at the end of August."
The pilots' union has consistently argued that flight allowances paid according to flight hours should be considered ordinary wages. The Asiana Airlines pilots' union also filed a wage lawsuit against management, but in 2020, the Supreme Court ruled that flight allowances could not be considered ordinary wages, citing their lack of fixedness since both eligibility and amount vary according to flight hours. The court also found no issue with the monthly prescribed working hours of 226 hours.
However, in December of last year, the Supreme Court reversed the situation by abolishing the fixedness requirement for ordinary wages and ruling that conditional bonuses must also be included in ordinary wages. The pilots' union now maintains that flight allowances should be included in ordinary wages, as the fixedness requirement has been eliminated.
Management is reportedly maintaining its stance that it is difficult to accept the pilots' union's demands, as this would significantly increase costs. Korean Air stated, "We are sincerely engaging in negotiations with the pilots' union at present," but declined to comment further.
The Asiana Airlines pilots' union has decided to take follow-up action depending on the outcome of the Korean Air union's lawsuit. It is also known that LCC pilots' unions, such as that of T'way Air, which recently underwent a change in governance structure, are revising their wage negotiation strategies based on Supreme Court precedents and full-service carrier (FSC) cases.
The Korea Pilots Labor Union Federation is preparing to provide legal support to its member unions and plans to respond at the federation level in the second half of the year. A federation official stated, "Since each airline has a different detailed system, we plan to support each union according to its response strategy," adding, "We hope the issue of ordinary wages will be resolved smoothly."
Jin Air, an LCC affiliated with Korean Air, is considering a plan to include a 200% bonus in ordinary wages and intends to implement this within the year. Jin Air already applies a monthly prescribed working time of 209 hours, so only the ordinary wage component will be revised.
Asiana Airlines, which has been incorporated into Korean Air, currently uses 226 hours as its standard, but this is also likely to be reduced. Asiana Airlines stated, "No internal discussions have taken place yet," but the industry expects that it will adopt the same wage system as Korean Air after 2027.
Previously, Korean Air overhauled its wage system by including an 850% bonus in ordinary wages and reducing the monthly prescribed working hours from 226 hours to 209 hours. The union expects that this revision will increase employees' actual wages by more than 7%.
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