Alitalia still negotiating with flight attendants

ROME – Talks between Alitalia and labour unions were suspended temporarily on Friday after overnight negotiations failed to produce an agreement between the near-bankrupt airline and flight attendants.

The talks were expected to resume later in the day. They are part of a series of negotiations aimed at winning union approval for a restructuring plan key to the airline’s survival.Alitalia is seeking to lay off 1 050 flight attendants – out of nearly 4 800 – as part of the plan.The airline has already reached an agreement with pilots and with ground staff.The pilots have agreed to 289 cuts plus about 100 early retirements, compared with the 450 layoffs initially sought by the management.The pilots also have agreed to increase their annual flying hours and to have a larger part of their salaries based on how much they work.Ground workers have accepted 2 500 layoffs, compared with the 3 400 originally sought by the company.Union approval of the recovery plan is crucial to the company’s survival, as it would allow Alitalia to access a EUR400 million (N $3,2 billion) loan approved by the Italian government and the European Union.Alitalia says it has only enough liquidity to pay salaries until the end of this month.Unions insist, however, that before giving final approval, they want to meet with government officials to get reassurances that laid off workers would be given increased unemployment benefits.The government owns 62 per cent of the airline.Alitalia’s plan, devised by chairman and chief executive Giancarlo Cimoli, originally envisaged 5 000 job cuts as well as spinning off the company’s service operations from the flight business.Alitalia has been struggling with competition from discount carriers and consolidation among established players.The company has posted an annual profit only four times in the last 16 years.- Nampa-APThey are part of a series of negotiations aimed at winning union approval for a restructuring plan key to the airline’s survival.Alitalia is seeking to lay off 1 050 flight attendants – out of nearly 4 800 – as part of the plan.The airline has already reached an agreement with pilots and with ground staff.The pilots have agreed to 289 cuts plus about 100 early retirements, compared with the 450 layoffs initially sought by the management.The pilots also have agreed to increase their annual flying hours and to have a larger part of their salaries based on how much they work.Ground workers have accepted 2 500 layoffs, compared with the 3 400 originally sought by the company.Union approval of the recovery plan is crucial to the company’s survival, as it would allow Alitalia to access a EUR400 million (N $3,2 billion) loan approved by the Italian government and the European Union.Alitalia says it has only enough liquidity to pay salaries until the end of this month.Unions insist, however, that before giving final approval, they want to meet with government officials to get reassurances that laid off workers would be given increased unemployment benefits.The government owns 62 per cent of the airline.Alitalia’s plan, devised by chairman and chief executive Giancarlo Cimoli, originally envisaged 5 000 job cuts as well as spinning off the company’s service operations from the flight business.Alitalia has been struggling with competition from discount carriers and consolidation among established players.The company has posted an annual profit only four times in the last 16 years.- Nampa-AP