MILAN: Troubled airline Alitalia presented trade unions with plans to cut over 2,000 jobs and slash salaries by up to a third under a cost-cutting survival plan. Unions said the job cuts would total more than 2,400, nearly a fifth of the company’s global headcount, while the company put the total at 2,000 and said there plans to recruit 500 new cabin crew by 2019 as the restructuring hopefully brings a return to profitability.
Company CEO Cramer Ball said the job cuts would mainly come from a 51 per cent reduction in office staff and a 20 per cent reduction in non-flying operational roles.
“Headcount reductions are a painful but necessary action that, alongside other cost reductions, will stabilise our financial situation and create long-term sustainability,” the Australian executive said.
“These changes are essential if we are to compete effectively in the extremely tough European aviation market.”
Union officials said that staff who survive the cull are being asked to accept drastic pay cuts — up to 28 per cent for pilots and up to 32 per cent for hostesses and stewards.
The unions called for a strike on April 5 to protest a restructuring plan which is likely to be closely scrutinised by the Italian government, which has been critical recently of the way Alitalia has been managed under the de facto control of Etihad Airways, Ball’s former employer.
Extensive jobs cuts have been anticipated for months at the loss-making Italian carrier.
Etihad acquired a 49 per cent stake when it saved Alitalia from bankruptcy in 2014.
The Emirati airline entered the partnership declaring its intention to transform Alitalia into a leaner operation with industry-leading service standards — both goals it has failed to deliver, according to industry analysts. The latest survival plan involves cutting costs by one billion euros ($1.07 billion) by the end of 2019 whilst simultaneously growing sales by 30 per cent. The company had said on Wednesday this would depend on unions agreeing new working arrangements and job cuts — issues which had already prompted a series of strikes in recent months. — AFP
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