Agreement between SAS and trade unions finalized - new collective agreements expected to provide MSEK 500 in annual cost savings
The SAS Group has reached a final agreement with unions representing its pilot and cabin crew personnel, meeting one of the conditions for participation by its major shareholders in the rights issueOn February 9, 2010, the SAS Group announced that a letter of intent was signed with unions representing its pilot and cabin crew personnel, setting forth a commitment for additional annual cost savings of approximately MSEK 500. A final agreement is one of the conditions for participation by the Swedish Government, the Danish Government and the Norwegian Government in the rights issue, and accordingly, Group Management and the unions have held extraordinary negotiations since February. Tonight, SAS reached a final agreement with all 4 cabin crew and 4 pilot unions, representing MSEK 500 in annual cost savings through measures such as salary reductions, salary freezes, reduced allowances, reduced pensions and other reimbursements.
“These new agreements with the unions are crucial for the ongoing rights issue and the negotiations were very intensive and constructive. Cost savings of MSEK 500 in the collective agreements represents a strong common effort by all in SAS for the future ”says Mats Jansson, President and CEO of SAS.
In total SAS has reached agreements with trade unions of SEK 2.1 billion in 2009 and 2010 and the total cost savings program under Core SAS is now SEK 7.8 billion.For further information, please contact
Henriette Fenger Ellekrog, HR, Communication and Strategy + 46 70 997 1223
Sture Stølen, Head of SAS Group Investor Relations, +46 70 997 1451.
SAS discloses this information pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was provided for publication on 12 March 2010, at 0800 am CET.