A significant agreement reached on Finnair pilots' efficiency measures
Friday 2, April 2010
Finnair and the Finnish Airline Pilots' Association SLL, which represents the company's pilots, have reached an agreement on efficiency measures to complement the pilots' collective agreement.
"This is an historic agreement, which demonstrates a significant acceptance of responsibility on the part of the pilots in the difficult situation that
Finnair and the entire sector is facing. It is encouraging that through this agreement we have achieved permanent structural changes, not only short-term savings," says Finnair's President & CEO Mika Vehviläinen.
In November, National Conciliator Esa Lonka established a working group whose goal was to find, in addition to a five per cent wage reduction, 13 per cent savings in pilots' unit costs. The SLL's council accepted a working group proposal by which the pilots' contribution of around 20 million euros to the savings target for personnel costs would be fulfilled.
"The agreement reached reflects the current economic situation. The decision on cuts and wage reductions was not easy for us. Through the agreement reached, we pilots have shown our commitment to Finnair and also that we accept our responsibility for the company's future," states SLL Chairman Kristian Rintala.
The cost savings will arise from, among other things, changes to improve efficiency, a gradual rise in the retirement age and changes to free day arrangements as well as a lengthening of the summer vacation period, which will improve crew utilisation. The changes will increase the pilots' average flying hours.
"Surviving in the current hard competitive climate among airlines requires above all cost-competitiveness, which is the objective of the 200 million euro savings programme. Changing operating practices throughout the organisation and achieving our common goals also requires the contribution of personnel. Here we have a clear example of a group in which the signs of change in the environment have been recognised and understood," says Vehviläinen.
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