7-Dec-2010 1:07 PM

Finnair cabin crew reject mediation, strike carries on

Finnair cabin crew rejected a mediated settlement in a labor dispute on 06-Dec-2010, extending strike action on 07-Dec-2010, to include transport union members who said they will support the action by halting fuel supplies to the carrier (Associated Press, 06-Dec-2010). More than 800 flights have been canceled since the strike began on 30-Nov-2010. There are reportedly no plans for new talks. Finnair accused cabin crews of pursuing "unreasonable goals" as the airline struggles to cut costs with declining demand, competition from budget airlines and overcapacity. It has laid off hundreds of workers and doubled an annual savings program to 200 million with most new cuts aimed at personnel costs.

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