Alitalia reaches redundancy deal with Italian government and unions

Airline Industry Information, Oct 6, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Italian airline Alitalia, the Italian government and Alitalia workers have agreed a deal on the issue of compensation to workers who will be made redundant as the struggling carrier restructures its operations.

The agreement means that the airline can now begin in earnest its restructuring plan using a EUR400m loan secured by the Italian government. Italian Social Affairs Minister Roberto Maroni said that a five-year deal had been struck worth between EUR450m and EUR500m to provide redundancy packages for the 3,700 workers who will be laid off as the airline restructures.

Maroni said that those who are made redundant will receive two years of unemployment benefit and redundancy payments for three years. Alitalia and the unions will be responsible for any top-up payments, reports AFP.

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