Union agrees to salary reductions
Austrian Airlines Group and trade union vida have signed a framework agreement to cut staff pay in a bid to maintain revenues.
Around 2,000 flight attendents and 1,000 pilots face short-time working, salary cuts and reduced pension fund contributions.
From June 1 flight attendants' working time will be reduced to 90% and salaries to 95% as part of the agreement, Austrian said.
The loss-making airline said the pay difference would be made up by financial support from the Austrian job market service AMS.
Pilots' salary will be reduced by either 5% or 8.5%, and their pension fund contributions reduced by 75% from April 1.
Part-time staff with income below €1,140 and an employment level 50% below the national average will be excluded from pay cuts "in order to maintain social balance," said Austrian.
"We have now taken a crucial step forward in our efforts to overcome the present crisis with our conclusion of a package for cabin staff," said Austrian's coo Peter Malanik.
"This package will now enable us to realise the cutbacks in staffing costs that are necessary and counteract the anticipated slump in revenue."
Wilhelm Haberzettl, deputy chairman of the trade union vida, said: "A compromise that is based on solidarity and the common interest in shaping a positive future for the company could be found.
"In awareness of its responsibility for the interests of the employees and the company, the negotiations team of the trade union has agreed upon the compromise.
"With this mutual consent, we could avoid dismissals and further drastic measures in this critical time."
Subject to workforce approval, the cost cutting measures will remain in place for one year.
The Inflight Works Council, which represents cabin crew, and the Austrian Chamber of Commerce also agreed to the measures.
Austrian Inflight Works Council Captain Georg Riedl said cabin staff were willing "to contribute their share to the future of the Austrian Airlines Group."
In February Lufthansa launched its formal bid for Austrian Airlines, offering €4.49 per share.
The full take over of the airline is expected to cost Lufthansa about €377m, pending European Commission approval.
www.austrian.com