For the time being, the cabinet is not providing state support to KLM because some of the pilots refuse to participate in the wage sacrifices that are requested for the next five years. Minister Wopke Hoekstra is playing it hard and calls the position of the pilots 'risky' to the media. KLM President Pieter Elbers calls on the pilots and the unions to agree to a special commitment clause that binds them to longer-term interventions in the terms of employment.
More than four months after it was promised, the government has still not fully released the € 3,4 billion state aid with which KLM will have to get through the coming corona period. The support package is a combination of a government loan and state-guaranteed bank loans over a total period of five years. The first draw under the direct loan took place on August 26, 2020. On that day, EUR 277 million was transferred by the state. On the same day, the first draw under the revolving credit facility also took place for an amount of EUR 665 million. As indicated in the letters of June 26, 2020 and September 13, 2020, the State will not make a second tranche available until KLM's restructuring plan has been drawn up to the satisfaction of the State.
survive or power play
The question now is how long KLM can survive. The outlook has deteriorated again due to the new lockdowns, making loans necessary. The big question now is why the pilots want to endanger KLM. The pilots do agree to make agreements until March 2022, whereby pilots will hand in up to 20 percent of their salary. But to make wage agreements for five years, it goes much too far and they do not find realistic demands from the Minister in these uncertain times.
“I have called on the pilot's union to come back and sign. FNV is still considering it and I hope that these will also sign. I also know that many KLM employees are fighting for job retention and would like this to be resolved, ”said Elbers.
As it stands now, the unions and the pilots will decide the fate of more than 30.000 KLM colleagues, not to mention the suppliers. Nevertheless, a period of making agreements over the next five years is uncertain. We don't even know yet whether we can all celebrate Christmas in the family next month, let alone whether KLM can bring family members together during this festive month. On the other hand, there is Elbers' cry for help, the future of KLM and the pilots is at stake.
