Alitalia, Unions Agree To Cut Workers, CEO Pay

June 6, 2013

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Alitalia said on Thursday it had signed a deal with unions to cut salaries, paving the way for launching a new strategic plan for Italy's flagship airline.

Chief executive Gabriele Del Torchio and board members have agreed to cut their pay by 20 percent, while 2,200 ground staff will work 5 fewer days per month under a state-backed scheme.

"Everyone has given up something important, but in this way we have been able to safeguard jobs," Del Torchio said in a statement.

The next step is launching a new strategic plan for Alitalia, he said.

Alitalia, 25 percent-owned by Air France-KLM, said the deal will help it achieve its cost saving targets in the short-to-medium term.

The troubled airline, rescued from bankruptcy in 2008, posted net losses of EUR€280 million (USD$365 million) in 2012 and EUR€69 million in 2011.