A new collective labour agreement between trade union VNV and KLM with a duration until 1st March 2023 is harsh on the KLM pilots who live abroad ! They will no longer be able to fly to work at Schiphol for free.
Instead , they will pay a fixed amount for commuting every month , which implies , the existing home-work arrangement for employees living abroad will be abolished.
Approximately 2.9 percent of KLM's staffs made use of the commuting scheme , where not only pilots , there are cabin crew , whos used this.
Trade union VNV said ,
It has been agreed that the existing home-work arrangement for employees living abroad will be abolished. As a result, pilots who live abroad will pay for commuting. Although the regulation is lawful and customary in aviation, the VNV wants to remove the concerns that have arisen about this with this adjustment.
KLM said ,
The existing international commuting arrangement for pilots has been discontinued. Pilots who live outside the Netherlands will now pay for their flights when commuting to work.
The commuting scheme has been controversial , partly because it encouraged tax avoidance, as per the state agent previously .
The state agent is an independent supervisory authority that monitors compliance with the conditions of state aid . KLM received a total of 3.4 billion euros in support during the corona crisis.
The state aid was used by KLM pilots living in Spain or Ireland , for example. They pay relatively little income tax, partly because they can travel to work at Schiphol for free.
Though , it is legal to make use of the scheme and KLM may also facilitate this , there are political hindrances involved to this . However, KLM says , such compensation is quite common in aviation because it is a very international industry and is often recruited abroad.
The provisional agreement also states that pilots will receive a 4 percent wage increase, just as was previously agreed for ground staff. The increase is done in steps of 2 percent.
VNV's release read ,
In line with klm's ground staff, the agreement agreed on a 4% two-step wage increase. For example, the loss of purchasing power due to high inflation in the Netherlands is taken into account.
VNV Chairman Willem Schmid:
"These agreements keep pace with KLM ground staff and give substance to KLM's strong recovery after years of heavy wage moderation and the current high inflation. KLM once again has the space to do so. With this agreement, KLM can work together with its pilots on further recovery and a healthy future. That will take us back to normal."
KLM said ,
KLM has ensured that the new CLA takes account of price developments in the Netherlands. A wage clause specifying a 2% increase effective 1 October 2022 and further 2% effective 1 March 2023 has been agreed. This reflects agreements recently reached with the trade unions representing ground personnel.
Since KLM pilots, among others, have made a major contribution during the corona crisis, a one-off payment has also been agreed for all KLM employees when there is sufficient financial space and KLM no longer has a credit facility with government guarantees.
VNV said ,
Additionally , a one-off payment has been agreed for all KLM staff . However, this will only be paid out when the airline has paid off all government support.
KLM alos agreed on these lines,
KLM employees will receive one-off payment when KLM no longer has a credit facility with government guarantees. This payment acknowledges the concerted effort made by KLM staff in the face of recent challenges.
However , there is a caution to these agreements from KLM ,
Despite KLM’s successful recovery, the future remains uncertain due to factors such as high inflation, rising costs, uncertainties surrounding coronavirus and scarcity in the job market . KLM must therefore continue to cut costs structurally. The negotiating parties agreed to return to the table if the situation so demands in the coming period.
