KLM battling union; Euro flights to be run by Cityhopper

Dutch airline KLM is planning to transfer all inter-European flights to its KLM Cityhopper subsidiary within next five years, according to Nos television. KLM Cityhopper / Flickr The move will help KLM save €20 million in labor costs. The airline firm is battling with unions over new cost reduction measures. Unions rejected a pay cut for novices, a holiday entitlement reduction and a three-year pay freeze. KLM sees Cityhopper as the best option to save money. Cityhopper get a lower pay and are fine with a conditions agreement. They also agree on fewer days off. Unions are not happy with KLM’s decision to transfer European flights to Cityhopper.