SAS in talks while staff prepare for bankruptcy
Published: 18 Nov 12 16:48 CET | Print version
Online: http://www.thelocal.se/44486/20121118/
Despite intensive negotiations between Scandinavian Airlines, SAS, and union representatives the company and staff have not been able to reach an agreement and bankruptcy may be imminent.
- SAS staff face 'worst pay' in Sweden: report (15 Nov 12)
- SAS unveils massive cost-cutting bid (12 Nov 12)
- Troubled SAS has 'less than a year' left: expert (12 Nov 12)
- SAS in last minute bid to avoid collapse: report (11 Nov 12)
SAS has been holding talks with pilot and cabin crew unions in Copenhagen all weekend to negotiate the terms of salaries, pensions and work conditions outlined in a rescue package that was aimed at salvaging the troubled airline.
A deal must be reached before the SAS board meets on Sunday evening to determine the airline's future, but in the late afternoon the management announced that they would not accept the terms laid out by the unions.
"Unfortunately there is no deal with any of the unions yet," SAS said in a statement.
The pilots' unions had presented their bid shortly after midnight between Saturday and Sunday but it did not come close to fulfilling the SAS management's demands, despite assurances to the contrary from the union's leaders.
Jens Lippestad, chairman for the Norwegian SAS pilots association and head of negotiations for the pilots' unions, had claimed that the Swedish, Danish and Norwegian unions' bid complied with SAS "on all areas, and ensures that negotiations can be completed in a successful manner."
Some success was initially reported from negotiations between SAS and the cabin crew unions.
"We feel SAS is being attentive," one source told the Ritzau news agency.
The Swedish cabin crew union had been cooperating with its Danish and Norwegian counterparts to negotiate a new deal.
"We handed in a joint proposal on Friday...The company has said it wants the same terms in the different countries and that is why we are cooperating," said union press secretary Jennie Zetterström.
But, in the end, SAS management rejected the cabin crews' terms, too.
The company encouraged all staff members who are currently travelling to ensure they have enough cash to manage on their own in case bankruptcy is announced.
The company also ordered all planes to be refuelled so that they can return home in the event of bankruptcy.
Some time after 5.30pm, Schur and two other board members reportedly left Kastrup for Stockholm, where a "crisis meeting" with bank representatives was scheduled for 8pm, daily Dagens Nyheter reported on Sunday night.
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A complete absurd out of touch, parallel universe kind of reality!
this sums up the SAS crisis pretty accurately!!
There is no alternative to SAS for the Scandinavian business traveler. It will definitely harm all 3 economies if SAS was to disappear. None of the alternatives have any kind of relevant longhaul destinations and Norwegian doesn't even have business class or sufficient flights to most destinations to benefit from their flexible tickets.
The cabin crew on airplane aren't much more then waitresses on a what is in essence a flying bus. It is nobodies interest to see SAS go bankrupt and have their employees end up in welfare for the taxpayer to deal with.
SAS isn't cheap to fly with, it isn't especially luxurious, so the money is being spent somewhere that the passengers never see. Another airline that is more efficient and better managed will fill the gap on their routes.
Need to get back to basics and maintain the aircraft,trouble is they have made hundreds of decents engineers redundant over the last ten years and not had a decent apprentice scheme in place to carry on successful maintenance.
Sad day for Scandinavia as a whole but it's been on the cards.
The company has not been managed properly in every department for years.