In short, the proposal includes plans to emerge smaller but stronger from the corona crisis in the future. Not only will jobs disappear, but other costs must also be structurally reduced.
The details of the reorganization for the period up to 2022 have been broadly agreed with all eight trade unions representing the personnel on the ground and in the air.
Requests for advice have been made for the Works Council to reduce and further simplify the KLM organization. In addition, there are more than 70 initiatives that will mainly reduce external costs. Major savings will be achieved, among other things by phasing out lease aircraft and using a more efficient fleet. We are also talking to suppliers and chain partners to contribute.
Thousands of jobs away
In terms of labor costs, KLM has already achieved savings by reducing the number of jobs. Due to measures already taken, such as not renewing temporary contracts (1,500) and the Voluntary Departure Scheme (2,000), the size of KLM is and is already shrinking. By the end of the year, KLM will employ about 4,500 fewer employees than for COVID-19.
Further reductions cannot be ruled out, according to KLM, given the scale and depth of the crisis. KLM has also reached agreement on the social plan with ground and cabin unions. For the Cockpit domain, existing collective labor agreements already provide for this. In addition, KLM will reopen the Voluntary Departure Scheme in certain departments / divisions in a targeted manner to prevent forced redundancies as much as possible.
“The KLM Works Council discussed and evaluated 37 requests for advice. The restructuring plan is ambitious and the pressure towards October 1 was high. The constructive approach of employee participation and the Works Council deserves all the praise. The positive advice on the requests for advice from the Works Council was linked to the successful completion of the social plan, ”KLM said in a statement.
According to CEO Pieter Elbers, important steps have been taken today on the way to restructuring. “The plan that we presented to the minister today is a condition for the financing package and thus an important milestone in KLM’s recovery. The aim is to ensure that KLM survives this crisis and comes out stronger. The measures are far-reaching and painful for all KLM employees, but necessary. I am grateful for the support of the Dutch government and proud of the efforts of all those involved to achieve this result together, KLM colleagues, the Works Council and trade unions. “
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