KLM and the VNV pilot union have not yet reached agreement on a longer duration of the cuts, the union announced on Saturday. A new agreement between the airline and the employee organizations is an important condition for the billions in support from the cabinet.
Because no agreement has been reached by the parties, the billion-dollar support of the Dutch government seems to be in jeopardy for the time being.
For Minister Wopke Hoekstra (Finance) there was a deal about a so-called commitment clause between KLM and the employee clubs a requirement for the billions in support of the cabinet. This week, however, Hoekstra announced that the previously set conditions were not sufficient. For example, the minister demands that the term of the wage sacrifices can be extended.
By means of the commitment clause, the unions had to commit to the wage cuts that have been agreed. However, the pilots union would rather commit to the agreement that was reached on 1 October with the KLM management.
State aid is essential for KLM
At the beginning of October, the largest airline company in the Netherlands reached an agreement with various unions about wage moderation until 2022. However, these cuts will take less time than the five-year state aid offered by the government. The cabinet would therefore like to align these maturities.
The state aid is essential for the airline company, which has been hit very hard by the travel restrictions due to the corona virus. The aid consists of a loan of EUR 1 billion and a guarantee of EUR 2.4 billion.
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