Alitalia, unions agree preliminary deal in last-ditch talks

Alitalia and labour unions reached a preliminary agreement on Friday on job and pay cuts that the loss-making airline says are necessary to keep it in business, union and government officials said. The tentative deal, needed to unlock fresh financing for the ailing Italian carrier, will however have to be approved by Alitalia workers in a ballot to become valid. After marathon talks on Thursday night, the company and unions agreed to trim the scale of lay-offs among ground staff to around 1,700 from 2,037 previously envisaged, and reduce cuts to flight personnel wages to 8% from up to 30%, the head of the CGIL union Susanna Camusso said. The government had hoped to win strong union backing for the plan by Thursday so that investors in the airline, including Etihad Airways with a 49% stake and Italy's top two banks Intesa Sanpaolo and UniCredit, could launch a cash call on Friday. That now looks likely to be delayed until after the workers' ballot, which could possibly be held as early as next week. "If the accord reached is approved by the workers, I imagine the shareholders will put the money in as planned," Industry minister Carlo Calenda said Friday.<br/>