The pilots reject the salary freeze, the Dutch government postpones the KLM bailout

ILUSTRASI. The Air France-KLM company logo. REUTERS / Philippe Wojazer / File Photo

Reporter: Fencing Septiadi | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – HAGUE. The Dutch government postponed plans to provide KLM with a bailout after its pilots rejected plans to freeze wages until 2025.

KLM plans to receive 3.4 billion euros in assistance, including 1 billion euros in direct loans from the government so that airlines can face the adverse effects of the pandemic.

“I am very disappointed at the moment, but in this way we cannot process loans,” said Finance Minister Wopke Hoekstra. Reuters, Sunday (1/11).

The Pilots Association previously stated that it approved a wage freeze until March 2022, and is now unable to change the terms of the deal.

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KLM CEO Pieter Elbers stated that without a loan from the government, the company would no longer survive.

Without the bailout fund, Elbers added, KLM would not be bankrupt, but it was certain that it would not last more than a few months.

In his letter to parliament, Hoekstra stated that he would immediately provide a bailout if all KLM employees agreed to a salary freeze until 2025.

“Right now the decision is up to KLM, and its trade unions, to ensure they can accept the terms the government is offering,” said Hoekstra.

He also added that referring to a number of new projections, the resurgence of the post-epidemic aviation industry is difficult in the near future.

“The prospect is grim, so it would be more appropriate if restructuring steps were taken to support long-term recovery,” he continued.

The KLM Workers Union, which represents field workers, and cabin crew, has agreed to extend the wage freeze at least as long as the company receives bailouts from the government.

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