KLM reaches pension agreement with pilots; labor actions scrapped

KLM and pilots union VNV reached an agreement on a pension scheme for the pilots, the union confirmed to NU.nl. This means that all planned labor actions are now off the table and both parties stopped ongoing lawsuits. 

According to VNV, with this agreement KLM is preventing "rising labor unrest among its pilot corps". The union would not expand on the price details of the agreement.

The airline and pilots union has been negotiating about KLM making an additional contribution to the pilots' pension for months. End July KLM announced that they want to get rid of guaranteed indexation of pilots' pensions. Stricter rules and low interest rates mean that the current agreement would lead to an additional payment of 600 million euros into the pension fund this year, too much according to the airline. 

Now KLM and VNV agreed on a different calculation method to calculate the amount KLM has to pay into the pension fund.

"It's a nice thought that with Christmas at the door on the basis of this agreement, we can work on restoring mutual damaged trust", VNV chairman Steven Verhagen said, according to the newspaper.

"I am satisfied that we made these agreements with VNV and that mutual trust is restored", KLM CEO Pieter Elbers said. "This move puts an end to the uncertainty about pensions for pilots and I am confident that we again can work in good cooperation on the further growth of KLM."