03
November
2016
|
09:01
Europe/Amsterdam
Details of 2015 collective labour agreement with pilots
Summary
As part of the 2015 collective labour agreement (CLA) with pilots, the AIR FRANCE KLM Board on 2 November 2016 approved the allocation of KLM shares to pilots. The share allocation has a value of EUR 26.7 million. This decision is the result of months of concerted effort by the KLM management and the new AFKL board.
AIR FRANCE KLM shares
The allocated shares are the first of three tranches with a total value of EUR 26.7 million. These will be partly issued in the form of AIR FRANCE KLM shares, which the group currently has in portfolio (so-called treasury shares). These shares will be issued to a foundation that is to be established by the pilots’ union VNV. The remainder will be issued to this foundation in cash, which will be used to procure shares.
Collective labour agreement
In the collective labour agreement for 2015-2017, it was agreed that AIR FRANCE KLM would issue shares to the sum of EUR 80 million, divided into three equal tranches over a period of three years. Because KLM cannot autonomously issue these AIR FRANCE KLM shares, the KLM management engaged in intensive consultation with the AIR FRANCE KLM board. The negotiations were intensive and the discussions complex, as this allocation is subject to various laws and other regulations. Now that approval has been given, KLM can fulfil its commitment to the VNV as laid down in the CLA.