SAS pilots support wage deal, won’t resume strike

Author of the article: Reuters Anna Ringstrom and Jacob Gronholt-Pedersen STOCKHOLM — Swedish, Danish and Norwegian pilot union members have voted to adopt a collective bargaining agreement reached with airline SAS last month, and will thus not resume their strike, the labor unions said on Saturday. SAS grounded some 3,700 flights during a crippling 15-day…
SAS pilots support wage deal, won’t resume strike

Author of the article:

Reuters

Anna Ringstrom and Jacob Gronholt-Pedersen

STOCKHOLM — Swedish, Danish and Norwegian pilot union members have voted to adopt a collective bargaining agreement reached with airline SAS last month, and will thus not resume their strike, the labor unions said on Saturday.

SAS grounded some 3,700 flights during a crippling 15-day strike in July.

In Denmark, 93% of pilot union members voted in favor of the deal.

“I am incredibly happy about the great support for the agreement, not least when we have been through such a long and tough conflict,” said Henrik Thyregod, chairman of the Danish pilots union.

“The members have clearly understood the gravity (of the situation) and this shows how strong the unity is among the pilots,” he said.

Unions in Norway and Sweden said a majority of their members also backed the deal, but did not immediately disclose how many had voted in favor.

Long-struggling SAS, which filed for U.S. bankruptcy protection on the second day of the strike, has estimated the industrial action cost it more than $145 million during what is normally the profitable peak summer travel season.

The deal entails lower wages and longer hours for the pilots but also a commitment from SAS, whose biggest owners are the governments of Sweden and Denmark, to rehire pilots laid off during the pandemic.

The new collective bargaining deal between SAS and unions also needs approval by a U.S. court handling creditors’ interests in the Chapter 11 process.

Under the agreement, pilots were given a guarantee that SAS will not set up new subsidiaries on different terms than what has now been agreed, Dansk Metal, the union representing Danish pilots, said in a statement.

SAS, which was already loss-making before the pandemic due to rising competition from low-cost carriers, has said it needs to slash costs further and raise more capital in order to survive.

While the Swedish government has rejected the company’s plea for more cash, Denmark says it might inject fresh funds if SAS also finds support from private-sector investors. (Reporting by Anna Ringstrom and Jacob Gronholt-Pedersen Editing by Terje Solsvik and Frances Kerry)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Bank of Canada head says unclear how quickly inflation will drop
Read More

Bank of Canada head says unclear how quickly inflation will drop

Tiff Macklem reiterated that interest rates would have to start going up this year to tackle inflation Author of the article: Bank of Canada governor Tiff Macklem. Photo by Adrian Wyld/Canadian Press/Bloomberg OTTAWA — Bank of Canada Governor Tiff Macklem said on Wednesday there was uncertainty about how quickly inflation would come back down due…
European Gas Jumps 24% as Russia Cuts Off Poland, Bulgaria
Read More

European Gas Jumps 24% as Russia Cuts Off Poland, Bulgaria

Author of the article: Bloomberg News Vanessa Dezem and Rachel Morison (Bloomberg) — European gas pared gains, as traders bet that top-buyer Germany will continue to receive shipments from Russia, following a halt in flows to Poland and Bulgaria amid a dispute over fuel payments. German utility Uniper SE reiterated that it’s possible to pay…