Finnair (AY, Helsinki Vantaa) has announced it has reached an agreement with the Finnish Cabin Crew Union (Suomen Lentoemäntä- ja Stuerttiyhdistys - SLSY) concerning proposed cost-cutting measures aimed at generating EUR18million (USD22.7million) in annual savings for the carrier. In return, the agreement will also protect cabin crew personnel from redundancies and outsourcing.
"The agreement brings Finnair EUR18million 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," the Finnish carrier said earlier this week. "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."
According to the agreement, cabin crew salaries will be cut by less than 10%, with flight attendants and stewards to work 15 more hours per month. Earlier this spring, the SLSY refused to budge on management demands for EUR18million cuts, saying it would only go as high as EUR12million.
As a result of the deal, Finnair has cancelled plans to outsource its cabin services but will honour a contract signed with OSM Aviation early last month to outsource inflight services on its Singapore Changi and Hong Kong International flights.
Since 2011, the carrier has set its sights on cutting EUR200million in cost-overheads mainly in its personnel department. With this agreement with SLSY, Finnair has reached deals with almost all of its unionized groups.
