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Finnair and SLSY reach stabilisation agreement

Direct News Source

16-Sep-2009 Finnair and the Finnish Flight Attendants' Association SLSY today reached a fixed-term stabilisation agreement. The agreement covers the EUR 12.3 million cost-cutting target specified in 2009. The cost-cutting target is part of a previously announced cost-cutting programme.

"The agreed solutions are not easy, but they are necessary. Through fruitful co-operation we reached an outcome by which redundancies will be avoided," explains Vice President Cabin Service Department Kati Lehesmaa.

The stabilisation agreement includes collective employment agreement flexibilities and other cost-cutting elements for the period 01-Oct-2009 - 31-Dec-2010. Basic salaries, for example, will be cut by five per cent in the agreement period, collective incentive bonuses set for 2009 will not be paid, and an agreed general increase in pay will be postponed for implementation after the agreement expires.

Through the agreement, redundancies of cabin staff for production and financial reasons have been avoided for the duration of the agreement. The agreement contains a pay-back model based on the Group results for 2010 and 2011.