The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Transportation / Storage Land, Water And Air Transportation Air Transport 51.10 - Passenger air transport
450 jobs Number of planned job losses
Announcement Date
16 November 2022
Employment effect (start)
23 November 2022
Foreseen end date
31 December 2023
Description
The Finnish passenger airline company, Finnair, is initiating co-operation negotiations as part of a plan for implementing the outsourcing of the cabin service. As a result of the possible outsourcing, Finnair would lay off 450 cabin crew personnel. Following significant financial losses, the company is seeking to restore profitability by reducing unit costs and strengthening revenues. The COVID-19 pandemic and the closure of Russian airspace, after Russia's attack on Ukraine, have affected the company's financial performance.
According to Finnair's press release, the company held discussions with the staff earlier in autumn 2022 to find solutions to reduce costs. The company was unable to reach a solution with the cabin personnel, thus the cooperation negotiations were initiated.
The Finnish Transport Workers’ Union (AKT) has announced a two-day strike in response to the decision concerning the company's cabin service. According to the union, the strike is a protest against Finnair and its personell policy. The union argues that the outsourcing is used as a measure trying to force cabin crew staff to approve the proposed salary cuts Finnair put forward in earlier negotiations.
Finnair announced earlier this year that it would dismiss 120 employees in Finland (Finnair-2022-FI). In 2020, the company laid off 600 employees (Finnair-2020-FI).
Finnair is a Finnish passenger airline partially owned by the Finnish state. The company currently has 1,750 staff employed as cabin crew in Finland. Globally they employed around 5,614 persons at the end of 2021.
Eurofound (2022), Finnair, Internal restructuring in Finland, factsheet number 107846, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/107846.
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