TAP Strike Mar 21-23rd

traveler · Post by **traveler** » Thu Mar 14, 2013 9:02 pm

We are getting stung by the planned strike. We were planning on travel to PT on the 21st and now have options for the 19th or 26th. This either adds a few days to our trip or cuts a few off. I really do not think this strike is all that good for TAP or the unions. If they manage to get their demands met, then ok. However, if they go through with the strike, the estimated cost to TAP is 15million Euros, which is equivalent to their reported profit last year. This seems that it would only force the company to cut more people/salaries to make up for the loss. In order for an internal devaluation to work then you have to reduce labor costs. Portugal is a Euro country, so they cannot devalue the currency - therefore the internal cost structure has to come down. Why are the pilots and other unions exempt from a salary reduction? All this does in my opinion is devalue the brand further and decreases the long term viability of the company.