KLM’s rescue operation has thus reached an impasse. Two of the eight unions representing KLM employees refused to agree to a clause included in the collective labor agreements that some see as an extension of the agreed wage moderation as long as government support to the company continues. That is expected until 2025.
Although the FNV union for ground and cabin crew refuses to sign, Minister Hoekstra’s annoyance is mainly directed at the pilots. The Association of Dutch Airline Pilots (VNV) wrote a letter to the minister on Sunday, in which the union says it is prepared to discuss austerity measures with the KLM management when the current collective labor agreement expires in 2022. The pilots also insist on a discussion with the minister. Like that Hoekstra know nothing. According to him, ‘the ball is now with KLM and the unions. The cabinet has made agreements with the management of KLM and is in discussion with them. ‘
The VNV, but also other unions are opposed to the situation. The KLM management and the minister have made agreements that have not been shared with them. Some of those ‘term sheets’ have been leaked, but have never been officially submitted to the unions. On Friday, KLM came up with a so-called ‘commitment clause’ with which the company still wants to secure the government’s financial lifeline, after it became apparent that Minister Hoekstra wants wage moderation until 2025. The deadline for signing the document expired at noon on Saturday.
The cabinet and KLM are causing unnecessary unrest among staff, said campaign leader Joost van Doesburg of FNV Aviation. ‘The staff has already clearly shown that they are prepared to make wages sacrifices in the next 2.5 years to keep KLM out of the danger zone, this vote of no confidence is inappropriate.’
There is also annoyance about the passage stating that ‘the parties are very grateful to the Dutch government for the support and wish to express this’. H.he PvdA MP Henk Nijboer called it on Twitter ‘inappropriate for a minister to use his position to humiliate employees and force them to be grateful’. However, it is unclear whether this passage has been included in the clause at the request of the minister.
KLM boss Pieter Elbers calls on the VNV pilot union to still agree with the demand. If that does not happen, KLM’s future is in danger, he says. ‘This was the last necessary step for the government’s approval. KLM will not get through this difficult time without this loan. This makes this deadlock extremely worrisome. At FNV we await the internal consultation. For now I have no choice but to call on the pilots ‘union again to take this last step.’
The VNV says in a response that it does not accept the clause, because in principle the wage sacrifice can be stretched to infinity, as long as the government supports KLM financially. “As long as the state aid lasts” is an unknown time, while the maximum duration of collective labor agreements in the Netherlands is limited to five years. The pilots are suspicious that the KLM management is using the corona crisis to curtail their generous remuneration and fringe benefits.
The question is whether Hoekstra will continue to block KLM’s support, if the unions continue to hold back. The rescue of KLM is important for the preservation of Schiphol as a hub in international aviation traffic and an economic pillar under BV Nederland, good for 68 thousand jobs. KLM is by far the largest user of the airport, with 28,000 jobs after downsizing.
The first part of the government support to KLM was made available to KLM at the end of August: 277 million euros from a 1 billion loan and a credit facility of 665 million, which can amount to 2.4 billion. It comes from eleven banks. The government guarantees 90 percent of this loan.
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