SAS to cut 40% of workers to save airline
SAS, the perennially loss-making Scandinavian airline, warned that it was facing its last chance for survival as it laid out a cost-cutting plan to slash 40 per cent of workers as well as reducing wages and pensions.
Rickard Gustafson, chief executive, challenged unions to back the plan, even though some have said in advance they will fight it, by stressing that 3.5 billion Swedish kroner in new loans for the airline was dependent on changes in collective agreements.
The number of workers at SAS would fall from 15,000 to 9,000 under the plan, with 800 administrative staff losing their job and several units being sold.
Pay would be cut by up to 15 per cent, pensions would be moved to defined contribution and working conditions would be standardised. – (Copyright The Financial Times Limited 2012)