October 20, 2020

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KLM sends reorganization plan to Minister Hoekstra

KLM sends reorganization plan to Minister Hoekstra

In short, the proposal includes plans to emerge smaller but stronger from the corona crisis in the future. Not only will jobs disappear, other costs will also have to be structurally reduced.

The details of the reorganization for the period up to 2022 have been largely agreed with all eight unions representing the workforce on the ground and in the air.

The works council has asked for advice on reducing and further simplifying the KLM organization. In addition, there are more than 70 initiatives that mainly aim to reduce external costs. Substantial savings are achieved, among other things, by the expiry of leased aircraft and the use of a more efficient fleet. We also speak to suppliers and chain partners to make a contribution.

Thousands of jobs away
KLM has already saved labor costs by reducing the number of jobs. Due to measures already taken, such as the non-renewal of fixed-term contracts (1,500) and the program for voluntary departure (2,000), the size of KLM is and will continue to decline. By the end of the year, KLM will employ around 4,500 fewer people than COVID-19.

According to KLM, further reductions cannot be ruled out in view of the extent and depth of the crisis. KLM has also reached an agreement with the floor and cabin unions on the social plan. Existing collective agreements provide for this for the cockpit area. In addition, KLM will reopen the system of voluntary departure in certain departments / departments in order to prevent forced layoffs as much as possible.

“The KLM works council discussed and evaluated 37 requests for advice. The restructuring plan is ambitious and the pressure by October 1st is high. The constructive approach of the employee participation and the works council deserves all praise. The positive advice on the works council’s advice requests was linked to the successful completion of the social plan, ”said KLM in a statement.

According to CEO Pieter Elbers, important steps were taken today on the path to restructuring. “The plan we presented to the minister today is a condition of the funding package and therefore an important milestone for KLM’s recovery. The aim is to ensure that KLM survives this crisis and comes out stronger. The measures are radical and painful for all KLMs, but necessary. I am grateful for the support of the Dutch government and proud of the efforts of everyone involved to achieve this result together, KLM colleagues, the works council and the trade unions. “