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RADP / Pulse Ghana  >  news  >  business

Airline says workers reject rescue plan

Samson Toromade

Almost 90 percent of its 12,500 employees participated in a vote and more than half those taking part opposed the deal.

Alitalia has been hit hard by competition from low-cost companies and has been accumulating losses for years
Alitalia has been hit hard by competition from low-cost companies and has been accumulating losses for years

The government had warned that there was no alternative to the plan, which called for 1,700 job losses and an eight-percent salary cut. The company's coffers are empty.

Italian press reports said Alitalia directors may as soon as Tuesday -- a public holiday in Italy -- ask the state to call in special administrators to prepare a possible takeover or liquidation.

The company is de facto controlled by Etihad Airways, which acquired a 49-percent stake when it saved Alitalia from bankruptcy in 2014.

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The pressure to find a solution has been intense, with Alitalia's cash expected to run out this month unless the carrier finds emergency funding, leaving its fleet grounded.

Etihad and Italian banks Intesa Sanpaolo and UniCredit have said they would only inject new funds if the unions agree to the new collective labour agreement and cuts.

The Italian government, which acted as a mediator in negotiations, warned on April 18 that a "no" victory would not only be costly but potentially fatal for the company.

Alitalia has been hit hard by competition from low-cost companies and has been accumulating losses for years.

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Samson Toromade Samson Toromade Samson Toromade is the Editor-in-Chief of Pulse Nigeria. Contact: samson.toromade@pulse.ng

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