STOCKHOLM – Scandinavian airline SAS and the unions representing their pilots said today that they had reached an agreement, ending a two-week strike that has cost the ailing airline between US$9 and US$12 million (RM40.11 to RM53.48 million) a day.
The agreement was confirmed by both the company and the unions after a negotiation session ran through yesterday and into today’s early hours.
“After 15 days of strike, SAS and SAS Scandinavia pilots’ unions have concluded mediation. The parties have agreed on new 5.5-year collective bargaining agreements and flights operated by SAS Scandinavia will resume according to their regular traffic program as soon as possible,” SAS said in a statement.
“SAS pilots have taken responsibility to sign a new agreement with SAS and the strike will cease,” the Swedish Air Line Pilots Association (SPF) said in a separate statement.
Pilots have been striking since July 4, when nearly 1,000 of them walked off the job after negotiations broke down.
They were protesting against salary cuts demanded by management as part of a restructuring plan to ensure the company's survival, and the firm’s decision not to re-hire pilots laid off during the Covid-19 pandemic.
According to SPF, 450 pilots will be re-hired under the new deal.
One day after the strike began SAS announced it was filing for Chapter 11 bankruptcy protection in the United States, and chief executive Anko van der Werff last week warned that the prolonged strike was putting the Chapter 11 process in jeopardy and, “ultimately, the survival of the company at stake”.
When the stoppage was in its tenth day, SAS said it had already cost roughly 1 to 1.3 billion Swedish kronor (RM0.43 billion to RM0.56 billion), with more than 2,500 flights cancelled.
The CEO also said the strike also “has a severe impact on our possibilities to succeed with SAS Forward”, the cost-saving programme launched by the ailing company in February.
SAS, which employs nearly 7,000 people, mainly in Denmark, Norway and Sweden, is also seeking to raise about 9.5 billion kronor in fresh capital. – AFP, July 19, 2022
