Finnair will not increase subcontracting in inflight services in Finland; savings agreed upon together with cabin crew
A savings agreement has been reached with Finnair's cabin crew. As a result, Finnair has today concluded the change negotiations it started in November and discontinued the subcontracting plan for inflight services on routes to/from Thailand and North America. The savings agreement is valid until the end of 2025.
Finnair has earlier agreed on savings with pilots, senior white-collar employees and engineers, and cabin crew based in Japan and Korea, and made local agreements that increase efficiency in Finnair Technical Services and different ground operation units. The savings agreements cover 87% of Finnair’s personnel.
”We are pleased that we have been able to find solutions together with our employees”, says Johanna Karppi, Senior Vice President, People and Culture at Finnair. “The double crisis caused by the covid-19 pandemic and the closure of Russian airspace has had a major impact on Finnair's finances. The agreements with our employees support our important goal of restoring profitability. We are grateful that our employees have been willing to contribute to solving our profitability challenge to safeguard the future of Finnair and jobs at Finnair.”
The cabin crew's agreement includes, among other things, elements to increase the efficiency of cabin crew usage, changes to long-day compensation and, for example, changes to the crew layover hotel rules. With the agreement, cabin crew is included in Finnair's staff incentive plan 2023-2025, along with all other employee groups who have made savings agreements. The staff incentive plan will produce a payout in the first quarter of 2026 if Finnair achieves the EBIT margin target set in the plan.
About 1,750 employees work as Finnair cabin crew in Finland.
In connection with the savings agreement, it was also agreed that the collective agreement applicable to Finnair's cabin crew in Finland will be extended by one year, i.e. until 31 January 2025. In addition, a negotiation result was achieved on salary settlement for 2023 and 2024, which follows the general line of the technology industry. The salary settlement is subject to administrative approval.
Further information:
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Finnair is a network airline, specialising in connecting passenger and cargo traffic between Asia, North America and Europe. Finnair is one of the oldest operating airlines in the world, celebrating its centenary in 2023. Sustainability is at the heart of everything we do – Finnair intends to reach carbon neutrality latest by the end of 2045. Customers have chosen Finnair as the Best Airline in Northern Europe in the Skytrax Awards for 12 times in a row. Finnair is a member of the oneworld alliance. Finnair Plc’s shares are quoted on the Nasdaq Helsinki stock exchange.