Alitalia signs redundancies agreement

Struggling Italian flagship carrier Alitalia has signed an agreement with the government and unions on helping employees whose jobs will be slashed under a plan to save the airline, news reports said today.

The transport workers’ union SULT was the only association not to sign the agreement, which details financial assistance for those facing layoffs, the news agency ANSA said.

SULT says the plan does not give sufficient guarantees over Alitalia’s future, and will consult members before deciding whether to sign, ANSA said.

The agreement was the condition set for Alitalia to access a €400m loan approved by the Italian government and the European Union.

Last month, the airline formally approved a four-year plan that included 3,700 layoffs as part of restructuring aimed at averting collapse.

Alitalia has been struggling with competition from discount carriers and consolidation among established players. The company has posted an annual profit only four times in the past 16 years.