FINNAIR on Wednesday announced it has scrapped its plan to outsource cabin crew services on its routes to and from Thailand and North America.
The Finnish majority state-owned airline said the plan, floated in conjunction with the launch of consultative negotiations last autumn, was scrapped after it reached a roughly three-year agreement on cost-cutting measures with its cabin crew.
Valid until the end of 2025, the agreement also stipulates that the current collective bargaining agreement for cabin crew will be extended by a year, until 31 January 2025.
“We are pleased that we have been able to find solutions together with our employees,” said Johanna Karppi, the head of people and culture at Finnair. “The agreements with our employees support our important goal of restoring profitability. We are grateful that our employees have been willing to contribute to solving our profitability challenge to safeguard the future of Finnair and jobs at Finnair.”
The airline has earlier agreed on cost savings with pilots, senior clerical staff and engineers, as well as cabin crew based in Japan and South Korea. It has also implemented a number of local agreements designed to improve productivity with ground operation units and technical services staff.
Presently, the cost-cutting agreements cover 87 per cent of its staff.
Aleksi Teivainen – HT