Response KLM on intended organisational change at Finance & Control

KLM would like to integrate most of its Dutch accounting activities in KLM’s shared service centre in Budapest and at a specialised revenue accounting provider in India. In so doing, KLM is taking another step towards achieving its Perform 2020 objectives. KLM has looked into alternative options. However, the alternatives examined by KLM fail to deliver all the desired cost savings.

KLM realises that the intended organisational change will be disappointing for the employees concerned and would like to offer them support in order to limit the impact as far as possible. Approximately 130 employees will be affected by outsourcing the accounting activities abroad. The employees concerned will be assigned to the TransitionCentre on the basis of mobility agreements hammered out with the unions. KLM hopes to find a suitable solution for the employees concerned in the years ahead based on natural attrition, voluntary departure schemes and mobility within and beyond KLM. Finally, KLM has agreed that wherever necessary it will liaise with the unions about supplementary instruments, if it should nonetheless prove impossible for a particular group of employees to be deployed elsewhere within or beyond KLM.

In recent months, KLM has done everything possible to reach a favourable recommendation from the Works Council for this decision. Unfortunately, this has not been possible to achieve. The Works Council recently decided to challenge KLM’s decision. KLM will wait for the Enterprise Section’s ruling. However, KLM is convinced that further optimisation rounds will be essential for these departments. And this will be necessary in order to achieve additional efficiency gains. Many of KLM’s competitors have already adopted similar measures.