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Tue, 27 May, 2014 02:07:36 AM
Co-determination talks fail to find alternative
FTimes-STT Report May 27
 
Finnair logo in front of its office at Vantaa Airport. Photo Lehtikuva.
The authorities of the national flag carrier Finnair on Monday said co-determination talks have failed to find any alternative to the planned layoffs and outsourcing measures. 
 
The company said it is now preparing for the cost-cutting measures and will be able to gather more details next month.
 
“We cannot sustain competition at the current level of costs,” said Finnair CEO Pekka Vauramo in a press release.
 
Finnair said it plans partial outsourcing of cabin crew, which will initially involve three long-haul routes.
 
Staff reduction of 540 employees has previously been estimated, which may encompass layoffs, part-time workers, furloughs or a combination of all these measures.
 
Finnair has a total of 1,500 cabin crew in the country.
 
Finnair CEO Pekka Vauramo. Photo Lehtikuva.
Thelma Åkersia, chair of Finnish Cabin Crew Union could not be reached for comment immediately.
 
In late March this year, Finnair planned to outsource 540 workers. Finnair also initiated moves towards the just concluded co-determination talks targeted at cutting manpower. 
 
The talks were aimed at reducing 140 personnel in the administration and support operations.
 
In total, the operation is set to touch on 680 employees. Moreover, Finnair said it is considering further actions later in the year.
 
Cabin crew outsourcing will initially begin on three long-distance routes. The next phase will be to outsource personnel on more than 10 routes.
 
Finnair is also looking at the possibility of setting up a subsidiary that will cater to cabin crew demands.
 
 
 
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