Finnair starts talks on cutting labour costs

Company renegotiates collective labour agreements

Finnair says it is looking for savings in personnel costs as part of a €60 million savings program announced in October 2012. The company has further defined its plans as it prepares to discuss collective labour agreements with its pilots, cabin crew and other personnel in the coming months.

“There is a good opportunity to agree on necessary savings together,” the airline said in a statement. “Primarily the aim is to identify saving methods that would not impact base salary, but would nonetheless decrease company costs.”

The airline has already begun discussions with labour groups and unions such as the Finnair Airline Pilots Association, the Finnish Cabin Crew Union and the Finnish Aviation Union, focusing on methods and schedules where saving targets could be reached.

Finnair says that the aim is to consider how compensation and working-time structures could be renewed to make them competitive and better align them with market salaries and practices.

The collective labour agreements between Finnair and the unions expire at the end of this year or the beginning of next year.

Finnair announced in August 2011 that it was aiming for cuts in annual costs of €140 million by 2014. Just over a year later it announced an additional savings target of €60 million.


[pictured: Finnair cabin service; courtesy Finnair]


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