By Toby Sterling and Bart H. Meijer AMSTERDAM, Oct 30 (Reut
By Toby Sterling and Bart H. Meijer
AMSTERDAM, Oct 30 (Reuters) – The Dutch authorities on Friday rejected a restructuring plan introduced by Air France-KLM’s Dutch subsidiary to deal with the consequences of the pandemic because of what The Hague sees as inadequate dedication by the corporate’s staff to wage freezes.
Two sources conversant in negotiations between the corporate and authorities mentioned the rejection was triggered by a refusal by unions to decide to wage freezes via 2025. The Finance Ministry and KLM couldn’t instantly remark. De Telegraaf newspaper, which first reported the information, reported unions and the corporate have been in emergency talks on Friday.
Mum or dad firm Air France-KLM AIRF.PA on Friday reported a 1.05 billion-euro ($1.24 billion) quarterly working loss and warned of worse to come back as resurgent coronavirus infections deliver new journey curbs. L8N2HK9EV
The Dutch authorities has made its bailout of the KLM subsidiary – a 3.four billion euro bundle of loans and mortgage ensures – contingent on the restructuring plan, which KLM submitted on Oct. 1.
It contains plans to chop prices by 15% and the corporate’s workforce by 20%, in addition to lowering carbon dioxide emissions by 50% by 2030.
KLM mentioned on Friday that in gentle of Europe’s second wave of coronavirus circumstances, it should now take into account additional “right-sizing” of the corporate, with out elaborating on whether or not which means fleet reductions or reducing extra jobs.
(Reporting by Toby Sterling and Bart Meijer; enhancing by Jason Neely)
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