July 6, 2022

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KLM raises wages by 5 percent, deferred during Corona

KLM raises wages by 5 percent, deferred during Corona

All KLM employees will receive a 5 percent pay increase starting last March, retroactively. According to the collective labor agreement, employees will already receive 2.5 percent in August 2020 and another 2.5 percent in August 2021. But this was then postponed due to the Corona crisis that has hit KLM hard.

The company says things are now going much better and so wages can go up. “Recovery is visible now,” says KLM now. “We have recorded a positive operating result for three consecutive quarters and paid off the first portion of loans.” KLM received a loan of 1 billion euros from the government to bypass the Corona crisis, and the government also guaranteed a loan of 2.4 billion euros from banks.

The pay increase applies to all KLM employees: pilots, cabin crew, and also baggage employees who have recently gone on strike. With today’s decision, KLM, like many other companies in the Netherlands, is creating financial space for employees to compensate for the high inflation.

Conditional Contribution to Work remains for the time being

Due to the Corona crisis and state support, KLM has also entered into agreements with trade unions on the so-called contribution to employment conditions of employees. For example, employees had to hand over year-end bonus, variable bonus, or vacation pay to keep costs down. As a result, employees lost about 10 percent on average. Employees earning below average didn’t have to deliver, pilots, and managers even 20 percent.

The employment conditions contribution will still be necessary for the time being, KLM says, as long as the support loans have not yet been repaid. KLM now wants to make new agreements with unions about the exact details of that contribution.

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