Finnair has reached a partial agreement with its pilots on a new wage model that will lower employee income and cut the airline’s costs.
The deal between Finnair and the Finnish Airline Pilots' Association (SLL) should save the flag carrier 15 million euros.
"In a way you could say that this is a wage cut: the goal is for us to do more work for the same money," says SLL president Sami Rolig.
The two sides also agreed on changes in contracts for new pilots, which the airline estimates will lower its costs by two million euros. Overall, the national airline wants to agree with pilots on savings of 17 million euros.
Wage talks are to continue until early September. Finnair has promised not to furlough or dismiss any pilots in the meantime.
€200m in cuts needed
“We were able to agree on essential topics related to the employment terms of new pilots,” said Ville Iho,Finnair’s Chief Operating Officer, on Wednesday.
“The remaining 15 million euro cost savings will be sought mainly from the new wage model that we have been working on together with SLL,” he added.
The latest cuts are part of an overall programme launched in late 2012 aimed at cut costs by 60 million euros – following a 140-million-euro savings plan begun a year earlier.
The financially-strapped company – one of Europe’s few remaining small national airlines – says the cuts must come primarily in personnel costs.
