SAS pilots support wage deal, won't resume strike

STOCKHOLM, Aug 6 (Reuters) – Swedish, Danish and Norwegian pilot union members have voted to undertake a collective bargaining settlement reached with airline SAS (SAS.ST) final month, and can thus not resume their strike, the labour unions mentioned on Saturday.

SAS grounded some 3,700 flights throughout a crippling 15-day strike in July. learn extra

In Denmark, 93% of pilot union members voted in favour of the deal.

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“I’m extremely pleased in regards to the nice help for the settlement, not least when we now have been by means of such an extended and hard battle,” mentioned Henrik Thyregod, chairman of the Danish pilots union.

“The members have clearly understood the gravity (of the scenario) and this exhibits how robust the unity is among the many pilots,” he mentioned.

Unions in Norway and Sweden mentioned a majority of their members additionally backed the deal, however didn’t instantly disclose what number of had voted in favour.

Lengthy-struggling SAS, which filed for U.S. chapter safety on the second day of the strike, has estimated the commercial motion price it greater than $145 million throughout what is generally the worthwhile peak summer season journey season. learn extra

The deal entails decrease wages and longer hours for the pilots but additionally a dedication from SAS, whose greatest house owners are the governments of Sweden and Denmark, to rehire pilots laid off through the pandemic.

The brand new collective bargaining deal between SAS and unions additionally wants approval by a U.S. courtroom dealing with collectors’ pursuits within the Chapter 11 course of.

Underneath the settlement, pilots got a assure that SAS is not going to arrange new subsidiaries on totally different phrases than what has now been agreed, Dansk Metallic, the union representing Danish pilots, mentioned in a press release.

SAS, which was already loss-making earlier than the pandemic as a result of rising competitors from low-cost carriers, has mentioned it must slash prices additional and lift extra capital so as to survive.

Whereas the Swedish authorities has rejected the corporate’s plea for more money, Denmark says it would inject contemporary funds if SAS additionally finds help from private-sector traders.