SAS pilots support wage deal, won’t resume strike

By Anna Ringstrom and Jacob Gronholt-Pedersen

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

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

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

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

“The members have clearly understood the gravity (of the state of affairs) and this reveals how robust the unity is among the many pilots,” he stated.

Unions in Norway and Sweden stated 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 time journey season.

The deal entails decrease wages and longer hours for the pilots but in addition 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. court docket 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 Steel, the union representing Danish pilots, stated in an announcement.

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

Whereas the Swedish authorities has rejected the corporate’s plea for additional cash, Denmark says it’d inject recent funds if SAS additionally finds help from private-sector traders.

(Reporting by Anna Ringstrom and Jacob Gronholt-PedersenEditing by Terje Solsvik and Frances Kerry)