Payout problem puts Italian airline rescue package on hold

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

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

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.

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

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

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

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

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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