May 6, 2004 at 10:51 pm
Unions agree on Alitalia reforms
Alitalia is making heavy losses
Alitalia union representatives have agreed to a government rescue package aimed at saving the Italian carrier from bankruptcy.
The plan calls for the removal of the firm’s CEO and managing director but reportedly does not refer to job cuts.
The company wanted to cut 16% of its 20,000-strong workforce – a proposal the unions rejected outright.
Details of the re-organisation of the mostly state-owned carrier will be announced within days, officials said.
‘No more strikes’
The agreement comes after four days of talks between the government, unions and the airline’s directors.
Sandro Degni of the UGL union said all nine unions were prepared to accept the proposal.
I really think the new plan will be different from the old ones
Sandro Degni, UGL union
Government officials said workers had pledged not to take further strike action.
Last week, Alitalia was forced to cancel hundreds of flights over three days as a result of strike action over the possible job cuts.
Unions will play a part in drawing up the new plan.
Erica Young of the CGIL transport union said she was confident the restructuring talks would be successful.
“We believe that if it’s the right industrial plan, the banks will buy into it, and we will have enough time to merge into something that will lead to growth,” she told the BBC’s World Business Report.
New boss
The government has called for fewer board members and for the roles of chairman and chief executive at the company to be combined.
Alitalia’s CEO Marco Zanichelli was appointed in February following a row between the government and the previous chief executive, Francesco Mengozzi, over proposed job cuts.
Chairman Giuseppe Bonomi was named last summer.
Chief of the state railroad, Giancarlo Cimoli will take on both jobs, according to reports.
Alitalia shares have been suspended since Wednesday pending the outcome of the talks.