Information source: http://news.ft.com/ft/gx.cgi/ftc?pag...query=Swissair


The management of Sabena, the troubled Belgian airline, said on Tuesday it would put its business plan to a referendum of its 12,000 strong workforce, unless agreement with unions could be reached inside 24 hours.

The referendum would take place in the first week of October but it was unclear whether the vote would be on the original plan or whether it would take into account amendments made through negotiations with the unions.

The plan involves the trimming of regional flights and concentration on routes to regional hubs like Heathrow. It originally proposed a 1,400 reduction of jobs but after talks with the unions this was reduced to under 700. Agreement on how to improve productivity by 10 per cent had been reached, the company said.

The plan was first unveiled on August 9 with the target of putting it to the board on September 17. Negotiations with the workforce have slowed this process. Management now says the impact of the September 11 attacks on the US on the aviation sector makes rapid agreement necessary. Other airlines have cut capacity by 10 per cent to 20 per cent in the wake of the attacks. Sabena faces additional problems of long term lack of profitability, competition from Ryanair, and a recent, acrimonious rift between its two main shareholders - the Belgian government and Swissair, itself undergoing a round of major cuts.