Strike is off!
10:45
Finnair Plc
Company Announcement
Finnair avoids strikes traffic returns to normal within a few days
Finnair Plc. Stock Exchange Release 15 November 2013 at 10.45 a.m. EET
Finnairs employer association PALTA (the Association of Support Service
Industries) and SLSY (The Finnish Flight Attendants Association ) and IAU (The
Finnish Aviation Union) have concluded a new collective labour agreement and
also agreed on the schedule and process of separate, company-specific
negotiations related to Finnairs cost savings. The foreseen strikes are
therefore cancelled and Finnairs traffic will return to normal within a few
days.
The negotiation parties reached an agreement in line with the Finnish
Employment and Growth Pact. Finnair and SLSY will negotiate on reaching the
savings necessary for Finnair during the period from November 25, 2013 to April
28, 2014.If savings targets are met, cabin personnel will be protected from
layoffs for two years. Finnair and IAU have already made much progress in
reaching accompany-specific labour agreement for technical staff, and they will
continue these negotiations. In addition Finnair and IAU continue
company-specific negotiations on labour agreements for ground handling
personnel.
Avoiding the strikes in the final stages of negotiations is excellent news
for our customers, although it is very unfortunate that the strike threats and
the flight cancellations caused by the threats have caused uncertainty and harm
to our passengers, says Finnairs CEO Pekka Vauramo. It is good that we at
Finnair, together with labour unions, are now proceeding with negotiations on
the cost savings that are so important for our airlines future. In our
industry, employment and growth require clear improvements in productivity and
I want to thank SLSY and IAU for committing to this target.
Our cost savings and productivity targets for personnel are unchanged, but
we can reach them through multiple means that are acceptable to all, Vauramo
underlines. Finnair deserves a chance to grow and survive in the tight
international competition, and reaching an agreement on the savings negotiation
process was a critical step forward. We now need to advance rapidly with this
work if we are to continue offering good flight connections from Finland for
Finns and for Finnish business, and to continue offering our European and Asian
customers a high-quality product and competitive long-haul flights.
Finnair targets permanent total savings of 200 million euros compared to its
2010 cost level. The sum includes the additional cost savings program of the 60
million euros announced in October 2012, which consists mainly of staff related
costs. Finnairs target is to reach the savings by the end of 2014.
FINNAIR PLC
Further information:
Finnair Media Desk tel. +358 9 818 4020, comms(a)finnair.com
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