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.

The government has set requirements for the granting of the aforementioned loan package. An important requirement in this respect is that all KLM employees must make a labour contribution during the term of the loan (expected until 2025). In recent months intensive negotiations have taken place with the trade unions in the three collective labour agreement domains (Cockpit, Ground and Cabin) about the fulfilment of the employment condition contribution of KLM employees, in accordance with the percentages and structure required by the government.

The results of these negotiations have been laid down in 'outline collective labour agreement agreements' and are included as such in the restructuring plan that KLM submitted on 1 October. These outline agreements give concrete form to this contribution until the beginning of 2022 (Cockpit) and the end of 2022 (Ground and Cabin).

In October, KLM and the trade unions worked on the main lines of these agreements in detailed agreements. At the same time, on behalf of the government, the Minister of Finance, with the help of a consultancy firm, is assessing the entire submitted by KLM restructuring plan. This evaluation should be completed by the end of October. Specifically in the area of employment conditions, the Minister emphasised to KLM that it should be more explicitly agreed and laid down that the contribution of all KLM employees should apply for the full duration of the loans.

In order to meet this requirement, without repeating the negotiations altogether, there is a 'commitment clause' which will be included in the agreements between KLM and the trade unions. In this clause, all unions must each commit themselves to continue to make the labour conditions contribution with all KLM employees in accordance with the requirement of the Ministry of Finance (whereby the exact details are up to KLM and the unions).

The management of KLM yesterday made an urgent appeal to the unions to agree to this. Today five trade unions CNV, De Unie, NVLT, VNC and VKP signed this clause. FNV (Cabin and Ground) is still considering the matter. The pilots' union VNV has not signed this clause. This means that KLM does not meet the requirements set by the Minister. This outcome was communicated to the Minister this afternoon.

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.

Why are there work stoppages?
The cabin crew unions FNV and VNC are protesting against a productivity measure that took effect on 30 October. This measure implies that KLM was compelled to reduce the number of cabin crew by one in Economy Class cabins aboard its Boeing 777-200s, Airbus 330-300s and Boeing 787s. These aircraft types operate 40% of KLM intercontinental flights. This solution has the least impact on customers and will largely generate the 4% productivity gain that is required.

KLM stresses that it was compelled to take this decision, as it was unable to reach agreement with cabin crew unions on KLM’s future vision and the required productivity measure. In the interests of continuity and healthy growth, KLM was compelled to implement the measure described above.

KLM would like to stress that it was compelled to adopt the “minus one CA measure” aboard the B777-200, A330-300 and B787, because the cabin unions were unwilling to consult on the issue of KLM’s future vision and required productivity measures. In the interests of continuity and health growth, KLM was therefore compelled to take this measure.

KLM remains open to negotiations and calls on the cabin crew unions to engage in consultation.

Aart Slagt briefly addressed the union representatives and invited all parties to swiftly reengage to discuss the situation that had arisen and resumption of negotiations for a new collective labour agreement.