Austrian Airlines has announced the conclusion of negotiations with the Ground Works, consisting of technical and commercial staff, comprised of nearly 3,000 of Austrian´s 7,800 employees, the company said.
Austrian Airlines said it anticipates a very slow recovery after the crisis. In order to retain as many employees as possible during a period of low demand, an agreement was reached with the works council on a long-term application of the short-time work model until 2022. There will be no customary annual salary increments or adjustments for inflation during this period.
After short-time work, salary will be waived for all employees. The company and employee representatives agreed on a temporary reduction of current salaries for the ground staff in the period March 20, 2022 until December 31, 2023. The pay cuts are socially staggered and equal between two and fifteen percent. Furthermore, the social compensation plan which has been in effect for many years will be extended until December 31, 2025. The package of measures will be subsequently voted upon. In turn, the cockpit and cabin crews will forego between 5.9 percent and 12.7 percent of their salaries in the years 2022 to 2024 as well as pension fund contributions. This will be complemented by various savings and flexibilization measures in the ramp-up phase.
On balance, the 7,000 employees will bear the brunt of some EUR 80 million in annual savings, enabling personnel costs to be reduced by 20 percent. Accordingly, their cumulative contribution will equal EUR 300 million by the year 2024.
The agreement reached on staff-related cost measures enables Austrian to retain as many employees as possible during the crisis.