Government support KLM has major consequences for staff: ‘It was together for corona, now we are alone’

There is growing criticism of the aid package with which KLM has been saved. Against the 3.4 billion euros of the Dutch state, there are tough conditions, including a large wage sacrifice and high sustainability requirements. “We are the ATM of France.”

The new requirements do not apply to KLM’s French partner, Air France. KLM staff feel upset and caught, says Telegraaf aviation journalist Yteke de Jong. She closely follows developments around the airline company. “The company has to be restarted from the ground up.”

Aid package of 3.4 billion

There has long been talked about the billions of euros that KLM has to save. Now there is a support package totaling € 3.4 billion. An amount split into a direct loan from the state (1 billion) and a loan of 2.4 billion euros from 11 different banks.

The company has been struggling financially for some time. But the consequences of the corona crisis made it worse. “Where KLM’s men and women normally fly us around the world, the vast majority of the fleet is now grounded,” Hoekstra said.

Difficult message

“If KLM falls over, it will have a direct effect on Schiphol Airport,” Hoekstra motivated the support. “And will have a direct effect on the choice of companies to locate here.” There are, however, conditions attached to the aid package.

Bonuses must be dispensed with, KLM must limit nuisance and promote sustainability. Despite the support, reorganization will have to take place. “We help KLM and that is a positive message. But I understand that this is also a difficult message for the staff.”

“They intervene in our collective agreements”

KLM must cause less nuisance, there will be fewer night flights and there must be refueled sustainably: much more than the European Commission has so far drawn up. There is a 15 percent reduction in costs. And the conditions state that employees who earn above average should submit a salary of 20 percent. At Air France, these requirements are not set, there should be no layoffs.

“Everyone wants KLM to stay upright,” says Reinier Castelein of the union De Unie. But the wage sacrifice is very large. Castelein outlines that there are families in which both partners work at KLM. They both hand in 10 percent of the salary. These are requirements that the government places on the company. According to Castelein, this is not legally allowed. “They intervene in our collective agreements.”

Reorganization

Castelein recalls that EUR 95 billion has been earmarked to save Dutch businesses and ensure job preservation. According to him, KLM is the first company to set salary requirements for the aid. “We were strongly against corona together, but now the KLM employee is on his own.”

Union man Castelein estimates that about 5000 employees have to leave KLM. The CEO of the airline thinks that the first contours of the reorganization will be clear at the end of July. The entire plan should be on the table in October. “As far as we are concerned, they leave as late as possible,” says Castelein. He hopes that the crisis will level off in the coming months.

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