HELSINKI--(BUSINESS WIRE)--Regulatory News:
Finnair Plc Stock Exchange release October 6, 2014 at 21:50 pm EET
Finnair and the Finnish Cabin Crew Union (SLSY) have reached a savings agreement in the negotiations related to Finnair’s savings program.
The agreement brings Finnair 18 million euros in permanent annual savings. Approximately 75% of the savings materialize during this agreement period and 25% in the future through changes to the employment terms of new cabin attendants. In return, Finnair gives cabin personnel protection from redundancies for the next two years, protection from outsourcing and pension incentive. The savings impact of the outsourcing contracts already made were acknowledged in the targets of the agreement.
“I am extremely happy and relieved that we were able to negotiate successfully with the cabin personnel. The negotiations have been long and gone through many phases, but the most important thing is that agreement was finally reached. The agreement is a great display of the negotiation teams’ commitment and their willingness to build Finnair’s future together. In return, we wanted to offer cabin personnel protection from redundancies for the next two years,” says Pekka Vauramo, Finnair CEO.
As a result of the savings agreement, Finnair is no longer planning on further outsourcing of cabin services. As announced on 1 September, however, Finnair has already signed a contract with OSM Aviation to outsource cabin services on Singapore and Hong Kong routes, and this will go ahead as planned.
”Reaching this savings agreement is a significant step in restoring Finnair’s profitability and enabling the financing of aircraft investments. The agreement brings the personnel costs of our Finnish cabin personnel to a sustainable and competitive level. As a result, we can continue serving the cabin on most routes with our own crew,” Vauramo says.
In October 2012 Finnair began a 60 million euro cost savings program – additional to the 140 million euro cost savings program begun in August 2011 – mainly in personnel-related costs. After the agreement signed with SLSY, Finnair has reached savings agreements with almost all of its personnel groups. Savings measures continue in the areas where savings targets have not been reached.
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