KLM steps up labor talks to meet Dutch revamp deadline, CEO says

Air France-KLM’s Dutch arm is stepping up labor talks aimed at securing employee wage cuts in time to qualify for a E3.4b bailout by the Netherlands government. Discussions with KLM’s unions and works council have accelerated as the airline strives to secure the 20% salary reduction by Oct. 1, CEO Pieter Elbers said Thursday. “We are now in the midst of very intensive talks to come to a comprehensive package meeting these requirements,” Elbers said. “It’s our ambition to have it finalized by Oct. 1. It’s a hard deadline.” Part of the plan is already in place after 2,000 staff signed up for voluntary departure and the carrier retired older planes and slimmed down its network. Still, pay cuts for pilots, cabin crew and ground staff are central to the pay deal required by the Dutch state in exchange for the funds secured to get the carrier through the pandemic. “One of the key conditions is a pay contribution from workers,” Elbers said. “Stakeholders should make a contribution as well.” According to the settlement under negotiation, lower-paid staff will take a cut of significantly less than 20%, with their higher-paid colleagues bearing a heavier burden, he said.<br/>