KLM confirms that the unions FNV Cabine (cabin personnel) and FNV Luchtvaart (ground personnel) have signed the airline’s “commitment clause”, thereby agreeing to join all KLM employees in surrendering employment conditions in accordance with the Ministry of Finance’s requirements (the precise details being up to KLM and the trade unions). The clause will be inserted into the agreements between KLM and the unions.

This brings KLM one step closer to obtaining the government loan and guarantees on bank loans totalling EUR 3.4 billion. The loan package is crucial to securing the future of KLM and its network for the Netherlands. Trade unions CNV, De Unie, NVLT, VNC and VKP have already signed the commitment clause. The Dutch Airline Pilots Association VNV has not yet signed.

Catering will return to normal on European flights departing from Schiphol from the morning of Friday, 20 December. European flights arriving early in the morning at Schiphol will still carry minimal catering on board.

Duty-free sales will also be suspended on intercontinental flights during this period. The work stoppage will not have an impact on catering on intercontinental flights.

In KLM's opinion, the proposal is balanced, offering advantages for everyone while at the same time requiring everyone to contribute. KLM expects this to conclude the long period of uncertainty for its cabin crew members and for KLM.

The two unions took this decision based on negotiations that took place during the past 24 hours, resulting in a new integral proposal from KLM addressing pension schemes, the “minus-1 CA” measure, and the resumption of labour contract negotiations.

KLM welcomes the VNC’s decision to suspend protest action and return to the negotiating table. FNV will consider KLM’s proposal and has suspended protest action pending its conclusion.

KLM also expects that it can keep delays to a minimum by adjusting various procedures, such as boarding.

However, the financial impact will be substantial, amounting to an estimated EUR 6-7 million on Saturday alone.

Consultation

KLM remains open to consultation and will continue to explore available options to resume negotiations. It is important to find a way out of this situation, to prevent further damage to our company and inconvenience to our passengers.

KLM is pleased with the result. It falls in line with goals set for Perform2020 and within the proposals that KLM made in mid-July. The trade union, CNV, VHKP, and NVLT have either already submitted the proposal to their rank and file, or plan to do so in the near future.

Very soon, KLM will hold discussions will all five ground trade unions to discover whether everyone can agree to the formulation of KLM’s proposal.

KLM understands and respects what its staff, and hence the FNV and other unions, find important. KLM’s labour contract proposal therefore addresses, among other things, the wishes of the FNV regarding policy for older staff, salaries and permanent contracts.

The four other unions previously indicated that they would present the outcome of the July labour contract negotiations to their members. They see no reason to organise protest action.

FNV once again announced this morning that it would be calling on FNV-affiliated ground personnel to work “strictly” according to the rules. KLM does not expect this call to action to have any negative operational consequences either. If, in carrying out such actions, FNV hopes to achieve the same consequences as the courts aimed to prevent, FNV is acting in contravention of the judgement.

KLM reasserts its position that FNV is nonetheless calling for action instead of entering into dialogue. And KLM reiterates its invitation to enter into further discussion.

Because KLM employees always execute their tasks safely and in accordance with the applicable rules, KLM does not expect this call to action to have any negative operational consequences.

If, in calling for such action, FNV hopes to achieve the same consequences as the courts aimed to prevent, FNV is acting in contravention of the judgement.

KLM has ascertained that FNV is nonetheless calling for action instead of entering into dialogue. KLM reiterates its invitation to enter into further discussion.

• All staff will receive a one-off bonus of EUR 1,600 in 2016;
• All staff will receive a structural salary increase of 1% effective 2018;
• All staff have the option of converting up to 20% of their salary into a profit-sharing scheme;
• KLM will ensure job security, with no discharge on economic/financial grounds for the duration of the CLA, despite the on-going reorganisation;
• KLM is prepared to offer fixed contracts to 165 temps;
• KLM will adhere to national agreements in favour of unemployment insurance (WW) coverage for a three-year period.

On top of that, it is important to bear the following in mind:

• Despite the economic/financial headwind, no KLM employees have been compulsorily discharged. The reduction in FTEs over the past year was achieved through natural attrition;
• The labour costs of fellow handling companies are up to 30% lower than KLM’s;
• Work pressure if up to 20% higher at fellow handling companies.

KLM remains convinced that its proposal contains a great package of agreements, which will contribute to ensuring a brighter and better future for our organization.

While the FNV union has repeatedly presented ultimatums, KLM has continued to pursue dialogue in the on-going negotiations. The other four unions have presented KLM’s CLA proposal to their members and see no reason for protest action.

KLM has initiated preliminary relief proceedings against FNV, which will take place this afternoon. Yesterday morning, KLM invited FNV to resume talks because we suspect that the points of disagreement are in fact smaller than originally expressed. FNV did not take up the invitation, choosing instead to initiate industrial action.

We advise our customers to keep a close eye the KLM website to see how long the delays will be.

We suspect the points of difference are actually smaller that have earlier been expressed. In the interests of our passengers, our employees and the future of the company, we once more call upon the FNV not to commence industrial action, but to join us once more at the negotiating table.

KLM condemns the intended industrial action announced by the FNV. The FNV industrial action includes a call to its members to refrain from loading cargo on Thursday morning and to hand out “FNV information” to KLM passengers at the check-in counters.

The Cargo market is under particularly high pressure at present. For this reason, KLM has been compelled to make tough decisions to reduce the size of its full-freighter fleet and to adjust the organisation accordingly. A difficult period, especially for the employees affected.

This call to action by the FNV will be bad for KLM’s cargo customers and will cost unnecessary money. This could have a negative impact on employment opportunities and will certainly not be in the interests of the workforce. Engaging in industrial action of this nature at this point in time is irresponsible and will damage KLM unnecessarily. The road forward is paved with dialogue, not industrial action.

KLM will deploy every possible resource in order to limit all forms of inconvenience for its customers.

In order to grow, invest and maintain job opportunities and future perspective, it is necessary that KLM continues to decrease its costs by increasing productivity in accordance with our agreed targets.

In its communications, the FNV has spoken of “threats of industrial action.” KLM is disappointed at such language and rejects any such actions on the part of the FNV. Should the FNV still decide to take actions of this kind, KLM will do all it can to ensure that customers and staff experience the least possible inconvenience resulting from their actions.

Other than the FNV (Dutch Trade Union Federation), no ground personnel labour unions indicated any reason to take action after KLM made its proposal, and all agreed to discuss it with their members in the coming weeks.