Mon, 08 Sep, 2014 12:06:28 AM FTimes-STT Report, Sept 8  File Photo – Lehtikuva. National flag carrier Finnair has the full support of the government in carrying out its decision to outsource cabin crew services, said Government Ownership Steering Department Director-General Eero Heliövaara.
Heliövaara said Finnair reached the decision reluctantly as it was left with no other choice.
Heliövaara clarified that Finnair is in need of making huge savings and was unable to reach an agreement on saving with its personnel.
According to Heliövaara, one has to remember that Finnair is a listed company and has thousands of shareholders and therefore envisages long-term value creation.
Finnair plans to outsource cabin services on its Singapore and Hong Kong routes from the Norwegian crew management company OSM Aviation in the first quarter of 2015.
The outsourcing will translate to employment reduction totaling 100 man-years.
Finnair will pay the workers through a subcontractor and an employee’s salary scale will be determined by the location where he/she is based. In this case the workers will be paid according to the salary scales in Hong Kong and Singapore.
The Finnish Cabin Crew Union-SLSY however holds a different opinion and suggests that Finnair has to pay wages equivalent to the Finnish standard, even if it outsources services.
Earlier, Transport Workers’ Union-AKT in a release said they were waiting to hear first from Pekka Haavisto, minister for state ownership steering, and Lauri Ihanen, minister of labour, before deciding on concrete measures
The transport unions are expected to meet this week to deliberate on measures to prevent Finnair from outsourcing the cabin services.
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