KLM had to reduce personnel costs and make it more sustainable, among other things, but that has not yet happened enough. That writes the so-called state agent for the airline, which monitors compliance with the agreements that have been made. Among other things, agreements that KLM wants to make with pilots about their collective labor agreement do not meet the conditions that were set when KLM received state aid.
Pay raise
This also applies to a proposed wage increase of 5 percent for all collectively agreed personnel, unless other measures are taken to cut costs. The state agent was not informed about this, when he should have been.
According to him, KLM also falls short in limiting tax avoidance by employees.
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The state agent who shares his findings, Jeroen Kremers, is not a member of the management or supervisory board of KLM, but can, for example, put topics on the agenda for meetings. It is also his job to report to the cabinet.
3.4 billion euros
During the corona crisis, KLM received a total of 3.4 billion euros in aid, which it must repay within 5.5 years. The Dutch government guarantees 90 percent. Part of the agreements was that pilots would make a wage sacrifice. This is still being discussed.
There was a new collective labor agreement for 2022-2023, but the pilots did not sign it because a ‘discussion’ had arisen. “It remains to be seen where this discussion will lead and whether the working conditions of pilots in 2022 and thereafter meet the support conditions or not,” the state agent writes. He does not state what the content of the discussion is.
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Kaag calls the findings of the state agent ‘firm’. According to her, they show ‘that we are not there yet’. The cabinet will soon discuss the conclusions of the state agent with KLM, she said via a spokesperson. “The basic principle is that KLM complies with the agreements made.”
In a response, KLM says it is ‘very grateful’ for the support it has received in recent years and that it has also ‘amply’ complied with the requirement to reduce controllable costs by 15 percent. The airline also writes that it will enter into discussions with the unions to find a solution.
Buy shares
The cabinet announced last week that it would buy shares in Air France-KLM, because otherwise the Netherlands’ interest in the company could be diluted. The government is expected to allocate approximately 220 million euros for this.
The Senate and House of Representatives must quickly approve the purchase. The House of Representatives will debate the issue today and the Senate will debate on Tuesday. The latter had asked for information from the state agent. Normally, he gives an interim report every six months, but due to the request of the senate, he now shares his ‘latest insights’ in between.
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