Thursday, December 2, 2010

Thousands stranded as cabin crew strike

FINLAND'S national carrier Finnair cancelled more than 200 flights today as a cabin crew strike entered its third day with no word on new negotiations.

Finnair spokeswoman Hanna-Kaisa Nurmi said the cancellations would affect around 7800 passengers.
The strike disrupted the travel plans for around 10,000 people on Wednesday and 6000 on Tuesday, he added.

Finnair has only been able to operate a handful of flights each day since the strike began on Tuesday afternoon.

Nurmi said that there had been no word as to when state labour mediator Esa Lonka would reconvene talks between Finnair and the Finnish Cabin Crew Union, after talks broke down.

The central point of disagreement is over schedules.

The Finnish Cabin Crew has said that Finnair is trying to undermine the system of compensatory days off that employees for long-haul flights.

Finnair's CEO Mika Vehvilaenen said earlier this week that he was frustrated by unions' demands in Finland, which he said made it too difficult to operate competitively.

He warned that that unless the company could make significant cost-cutting measures and agree on a favourable labour contract, the company would look into outsourcing operations and jobs to countries with cheaper labour costs.

The strike prompted Finnair to issue a profit warning, saying that the company is losing between 2 to 2.5 million euros ($2.71-$3.39 million) a day during the strike.

On Wednesday night the union reached a deal with SAS subsidiary airline Blue1, which flies mainly domestic Finnish routes.



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