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SAS threatened with Bankruptcy as it move to present a rescue plan on Monday

Sunday, 11 November 2012
Scandinavian airliner, SAS is threatened with bankruptcy if the company goes ahead with salary reduction and poor working conditions, the workers union have threatened.
Lower wages will lead to bankrupt: is ultimatum given by worker union to SAS asking the company to try by all means not to go against their threat. If SAS management fail to meet the workers union's demands on not to deteriorate working conditions, flight expert, Richard Björnelid, who has been an insider in the SAS issue says that the Union has threaten not to support the company from bankruptcy flight.

A source close to the flight expert, Richard Björnelid said according to various Swedish media sources, that within the Swedish government there are current discussions on how a bankruptcy of the company will be handled.

At a meeting recently, SAS workers union said accepting lower salaries and poorer working conditions so as to help the ailing company reduce its over heads and thus manage it deteriorating financial situation will not be accepted after SAS called on the Union to pay part of workers salary for December.

If that happens, the worker Union with an ultimatum said that they will prefer that the company goes bankrupt instead of cutting their working requirements and pay.

The cabin crew in Denmark were forced to take a pay cut of 25 percent for some staff - more work and restrictions on things such as holidays. Also the working house was to increase to 60 hours a week while rests and holidays reduced to two weeks.

SAS called on the Union to pay half the December salary for its members, according to Swedish business daily, Dagens industry. This means that union was to cover up to Dkr12,000 salary shortfall for its members.

The Swedish tabloid newspaper, Expressen writes that there is a lively debate within the Swedish government Cabinet Office on how to deal with a possible SAS bankruptcy.
The Company will on Monday morning present a rescue plan with savings of Skr3 billion.

"We fly today, we fly tomorrow. SAS has not set any departures time. We will return tomorrow morning at 8 am with the quarterly report and information about the new plan, "said SAS Communications department head Elisabeth Manzi to dagens industri on Sunday.
Asked that consumers are wondering if they dare book their flights with SAS - how can that be handled:
"We will get back with details tomorrow, we can not say anything before then," said SAS communication department.
Scancomark.com Team

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