The FINANCIAL — KLM Royal Dutch Airlines on July 9 reached a further agreement in principle with the Dutch Air Line Pilots Association (Vereniging Nederlandse Verkeersvliegers – VNV).
The agreement in principle reached with VNV will now be put before the association’s membership base, according to KLM.
Lengthy and intense negotiations took place with a VNV delegation in recent months. VNV consistently expressed its willingness to invest in the company. KLM and VNV have now reached an agreement for the forthcoming three-year period from1 January 2015 up to and including 31 December 2017, in which the pilots’ contribution towards the employment conditions is proportionately balanced with the consideration required of KLM by VNV and will also contribute significantly towards achieving the Air France KLM Perform 2020 objectives.
The outcome achieved through negotiation now means that pilots will give concrete shape to the annual productivity gain of 4%. The agreement also includes a concrete increase in the retirement age. Moreover, this agreement will also generate an improvement in KLM’s cash position. In return for this investment, pilots now enjoy access to shares. This will be defined further. The agreement in principle has yet to be tested against legal, fiscal and governance aspects.
“This agreement represents a significant leg of the journey towards creating a more competitive and healthy KLM. It contributes concretely towards achieving our Perform 2020 objectives. I am pleased with this agreement because all the respective parties displayed flexibility and a willingness to join forces with the KLM management board to build a new KLM„ Pieter Elbers, KLM President & CEO.