KLM reaches deal with ground staff unions for pay increase

Dutch airline KLM, which has been forced to cancel thousands of flights due to labor shortages, has reached an agreement with ground staff trade unions that will see workers receive pay rises.

In a press release, KLM said that while it was “no easy task” to reach an agreement, it was pleased that the negotiation’s results will bring “stability and improve the outlook for all our ground personnel”.

The agreements include KLM offering its ground staff a salary increase of 2% effective October 1, 2022 and a further 2% effective March 1, 2023. A minimum of €80 ($80) has been set for both increases, ‘to ensure that the financial position of those on lower incomes is strengthened’, the airline said. The offer will now go to union members for approval.

KLM said that rising inflation, declining purchasing power, high work pressure and the tightening labor market were factors in deciding to offer pay increases.

Over the past weeks, KLM had to increase flight cuts for its summer schedule due to staff shortages at Schiphol Airport.

The unprecedented wave of post-pandemic travel demand has set off a wave of operational challenges for many airlines in the industry, further exacerbated by staff shortages.