Payout problem puts Italian airline rescue package on hold

A
rescue plan for beleaguered Italian airline Alitalia has been put on hold following talks over
how to provide financial assistance for laid-off workers.

Italy’s
centre-right government, trade unions and the airline’s management are
struggling to reach a deal, reports the Financial Times.

The
problem is unlikely to derail the plan, reports the paper, but it requires a
solution soon because Alitalia
is fast running out of cash to pay salaries.

Management
has agreed with almost all nine unions representing employees that the
workforce should be cut by 3,700, or about one-sixth.

But
the unions say their acceptance of the job losses is conditional on the
provision of adequate financial support for those being laid off.

The
company estimates the job cuts will save it about €280m. But the problem is
finding enough financial aid to pay off staff.

Roberto
Maroni, Italy’s labour
minister, said the government did not intend to put more money into Alitalia, which is 62 per cent
owned by the Italian state

Although
it is uncertain how much financial aid might be given to the laid-off workers,
it is expected to run into millions of euros.

By Johann Tasker

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