Finnair announces YT negotiations on lay-offs to begin in Finnair Technical Services
23-Mar-2009 |
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Tags :Continental Europe, Finnair
Statutory consultative negotiations under the Act on Co-Determination within Undertakings (YT negotiations) will be initiated in Finnair Technical Services on the subject of lay-offs affecting all employees. When implemented, the lay-offs are expected to range from two weeks to three months, depending on the work situation of the different functions.
The objective of the lay-offs is to cut personnel costs by around seven million euros. The programme is part of previously announced savings targets for the whole Group.
Finnair Technical Services' financial situation has weakened more strongly than expected as a result of cuts in traffic by both Finnair and customer airlines from outside the Group. We have to find effective savings measures quickly in order to safeguard operational continuity. Without adjustment measures, Finnair Technical Services will make a clearly loss-making result this year, says SVP Finnair Technical Services Kimmo Soini.
A decision on the 50-million-euro cost-cutting programme initiated last summer and the YT negotiations connected to it was reached in Jan-09. At the beginning of February the decision was made to initiate a further programme to achieve the same savings. Measures to achieve a total savings target of EUR100 million will therefore be taken over the current year.
In addition to the Technical Services' YT negotiations, YT negotiations are also under way in the Flight Operations Division, the Commercial Division, Finnair Catering, the ground handling company Northport, and the travel agency Area. The combined cost-cutting target is nearly EUR20 million, of which part is included in savings targets announced earlier.
(c) Centre for Asia Pacific Aviation. Date posted: 23-Mar-09
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Finnair announces YT negotiations on lay-offs to begin in Finnair Technical Services 
