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Old 18th July 2003 | 17:12
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Sagey
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Joined: Feb 2001
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From: London
Full release from Swiss

SWISS reaches agreement with the pilotsī unions

SWISS and the SWISS PILOTS union (SPA) have set aside their
differences. In an agreement signed by both sides, the SPA waives rights to the implementation of the Arbitration Court ruling and withdraws from all outstanding legal proceedings. In addition, the SPA accepts the dismissal of 559 of its pilots. In return, SWISS agrees to make a one-time payment to all pilots declared redundant. The three charter aircraft will, in future, be operated by the former
Crossair pilots (OC 1). SWISS also withdraws its plans for the legal
establishment of its subsidiary SWISS Express.

In a constructive atmosphere, Aeropers and SWISS agreed on the
measures and the implementation of the restructuring programme. The
union, which was not involved in the Arbitration Court proceedings,
was able to reconcile itself with the effects of the SPA agreement.

Agreement with the two pilots' unions is an exceptionally important
prerequisite if the previously announced SWISS restructuring
programme is to be achieved.

After long and intensive negotiations, Swiss and the SWISS Pilots
union agreed on an amiable out of Court settlement.

The agreement is an essential condition which will enable the company
to successfully carry out the restructuring. It brings advantages
both for the departing SPA pilots and those who will remain.

The compensation for the 559 pilots in the regional fleet who will be
obliged to leave will amount to CHF 85,000 for a co-pilot and CHF
140,000 for a Captain.

The charter flights were originally operated by the former Crossair
pilots (OC 1). Following the changeover from Boeing MD-83s to Airbus
A320s, these flights were integrated into the Airbus Operation (OC
2). The charter operation, with its three SWISS SUN A320s, now return
to the OC 1 pilots corps.

SWISS is withdrawing its plans for the legal establishment of a
subsidiary SWISS Express. The commercial objectives of the regional
fleet, higher productivity and the cost structure will, however, be
rigidly adhered to. They form an important component of the regional
section of the Business Plan.

Agreement was reached with Aeropers, the former Swissair pilots'
union, on the implementation of the measures contained in of the
Business Plan. These include, amongst others, an innovative part-time
model as well as a contribution to the Turnaround from the planned
fleet reduction. With Aeropers, the union which was not involved in
the Arbitration Court proceedings, it was possible to reconcile the
effects of the SPA agreement on the medium- and long-haul pilots.

SWISS is convinced that agreement after this lengthy industrial
dispute will have an significant effect on other partners. The
negotiations with Kapers, the cabin personnel union, are close to
being finalised. The discussions with the ground staff (Gata, KV,
VPOD, Push) on the contribution of the personnel to the new Business
Plan are being intensively pursued. SWISS is optimistic that
agreement can be reached with all social partners in the very near
future.

Restructuring

The cornerstones of the new Business Plan and details of the planned
restructuring were presented on June 24. The "Foundation for Winning"
Project Group is working flat out on the implementation. The new
route network was announced on Friday, July 11. Information was also
given on the elaboration of the new European Business Concept. What
SWISS will in future be offering on board its European flights is
currently being worked on.

The sweeping reduction in costs, which is linked with the suppression
of about 3,000 jobs, is currently being discussed with the unions.
Discussions have taken place with the five largest suppliers on
questions of volume and cost reductions and are continuing in a
promising manner. In the workshops the new contractual conditions are
being negotiated.

SWISS support package for redundant employees

SWISS is facing decisive measures. 3,000 jobs must be suppressed in
order to ensure survival of the necessary Turnaround. This is
necessary to ensure the remaining 6,300 work places. In order to
alleviate the effects of the dismissals and, in order to support the
employees in this difficult situation, SWISS has prepared a package
of measures, designed to meet the needs of the personnel categories
concerned.

All employees are being offered a social plan which provides
substantial support. To ensure work places, the possibility of
setting up part-time posts is being examined. Special training is
being offered to section leaders to enable them to conduct dismissal
discussions and to provide after-support in a professional manner.
For those dismissed, an internal "Career Guidance", definition of
position and support for new career paths is being offered. In
addition, a Hotline has been set up which those dismissed may use as
required, whilst the employee care activities (HR Employee
Counselling) has been strengthened. In Basel and Zurich Helpdesks has
been set up, in collaboration with the regional employment exchanges
(RAV). On the internal Intranet system SWISS employees can consult
the job market offers.

MBA courses for pilots, organised in conjunction with the European
Aeronautical Institute, provide new career opportunities and permit
the attainment of academic qualifications. In a similar manner, a
continuation training course in marketing, finance and management has
been prepared for cabin personnel and ground staff. This will be
offered out in collaboration with the RAV and will be granted
official recognition on completion of the course.



Sagey
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