Alitalia and unions in tough talks on labor costs

CGIL,CISL sign contract to facilitate Etihad deal but not UIL

(ANSA) - Rome, July 17 - The CGIl and CISL trade union federations signed Thursday a new collective contract and job cut scheme as part of a plan for Etihad to buy a 49% stake in Alitalia, but the UIL federation declined to sign the deal.

The smaller UGL union also declined to sign the accord. The complex agreement climaxing months of tough negotiations involves reducing labour costs worth 31 million euros over the last five months of 2014 by laying off more than 1,000 workers. UIL Secretary General Claudio Tarlazzi said "there are serious problems of legitimacy on what they are signing. We propose a referendum" of Alitalia employees.

Earlier the left-wing CGIL refused to sign a separate preliminary agreement to lay off 1,635 workers some of whom would be moved to other aviation companies. Despite that CGIL reluctance Labour Minister Giuliano Poletti claimed union resistance was crumbling. "I believe all the conditions are in place for wrapping up the deal," Poletti said. "The problem with CGIL mainly concerns the agreement on how to manage the layoffs," he added.

Originally the Abu Dhabi airline Etihad demanded 2,251 employees be laid off. "With the agreement of all the other organisations and the partial agreement of CGIL, I think the conditions are in place (to close the 560-million-euro deal)," Poletti claimed. Alitalia CEO Gabriele del Torchio cautioned that "Alitalia is dying. I believe that this evening we will find an agreement". The Italian government sees the deal as Alitalia's last chance to survive following a 500-million-euro bailout package last autumn. However, it comes with stiff conditions, including the job cuts and restructuring of the airline's debt, estimated by some at 800 million euros.

The unions have been locked in difficult negotiations with the government and the airline over proposed job cuts, contract agreements and reductions to labour costs. Over the weekend unions reached an agreement to lay off 1,635 workers - compared to the 2,251 job cuts that were initially touted - in a preliminary deal that would see some staff being moved to other aviation companies. CGIL subsequently said it would not give its backing to the deal.