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Danish government prepares for SAS bankruptcy

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New employment conditions outlined in today’s press

The Danish government is preparing for a SAS bankruptcy now that some Danish SAS unions are saying no the savings plan. One of the unions, FTF, says that it is scary that the government is now preparing itself for a SAS bankruptcy.
The union of Danish pilots is also saying no. One of the greatest obstacles is that the pilots – and other crew members – now do not start working when leaving home but have instead to report to the staff base and start work. Today a pilot or cabin attendant can live in Stavanger in Norway and be based there but is then asked to start working on a Copenhagen flight.
Then their work starts when they report at Stavanger airport, and their expenses too, so that there may be hotel and expenses involved before they really start working on the flight leaving Copenhagen.
According to SAS, the new agreements do away with the complexity of the previous agreements and provide greater flexibility by removing the “structural barriers that have challenged the company’s flexibility and profitability,” as stated in an announcement by SAS.
The new employment conditions are broadly outlined in today’s press and stock exchange announcement:
“There are new and fewer steps. In adjusting to the new agreements, maximum salary reduced by 15%. If the basic salary of the new pay scale fell by more than 15%, compensated plus.
Pensions in SAS adapted to the Scandinavian labour market. All with a so-called defined benefit plan passes to premium-based system.
“Rules on working hours for staff in cabin and cockpit aligned. Full-time employees work a maximum of 195 days per year. Working hours can max be planned for 47.5 hours a week. When there are delays, overtime is possible but never beyond the official limit of 60 hours. Overtime compensated. Rest rules are based on the regulations.
“Flying personnel should now basically be employed at the base, they fly out from. One can thus no longer be flying from his home base to the base to be flown from and let this count as part of working. Staff who do not want to move the base can be at home base and fly the routes departing from there.
“The ability to dispose of available staff has expanded. SAS’s traffic is often affected by such weather conditions or technical conditions and with the new agreements increased flexibility to, for example, change an employee’s destination or time of check-in.
“There will now apply the same rules for payment of subsistence allowance, as adapted to the Swedish state’s rules. In addition, adjusted a number of other factors, such as rules for meal breaks.”
CEO Rickard Gustafson stressed at a press briefing that the company has plans to hire pilots and cabin crew at foreign bases. In return, employees must meeting the new demands of the management. Flying staff are to get a pay cut of 12%, but no one will get pay cuts of more than 15%. Aircrew will have the same terms of employment, whether employed in Sweden, Norway or Denmark.
TTG Nordic
[pictured: SAS Airbus A340; courtesy SAS]

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