Finnair is reviewing opportunities to create business partnerships in
operations that support flight traffic. The review will take place in ground
handling company Northport, Finnair Cargo Operations and Finnair Catering.

Statutory employer-employee (YT) negotiations in Catering, which lasted ten
weeks, have ended. During the negotiations, solutions by which the required
five million euros in savings would be achieved were pursued with the Finnish
Aviation Union (IAU) , which represents production personnel. The IAU’s local
units have not accepted a stabilisation solution proposed by the employer,
which was an alternative to the loss of 120 jobs.

With the failure of these negotiations, Finnair Catering Oy is compelled to
seek cuts in personnel costs in other ways. In the first stage, Finnair
Catering will make at least 60 employees redundant for productional and
financial reasons. Demand for catering products has fallen due to lower
passenger numbers and altered service concepts. Finnair Catering will continue
to pursue a solution to adjust its retail operations.

Following these redundancies, a reorganisation of operations will be considered
to achieve additional savings, and a review of structural solutions will be
initiated.

A stabilisation agreement generating 1.5 million euros in savings was reached
with white-collar employees in Finnair Catering in October. Finnair Catering Oy
employs a total of around 650 people.

During the latter part of 2009, the Finnair Group’s ground handling company
Northport will review the possibility of reorganising its baggage hall and
apron services at Helsinki-Vantaa airport. To this end, Northport has signed a
letter of intent with the Barona Group.

Northport is seeking arrangements by which efficiency and significant cost
savings will be achieved through cooperation in ground handling operations.
Behind the review, moreover, is Helsinki-Vantaa’s new baggage handling
terminal, which is expected to reduce Northport’s personnel requirements in
future. Northport is seeking a way of working by which employees can be offered
full-time work and the need for labour reductions is minimised. Around 550
people work in baggage hall and apron tasks.

Furthermore, partnership options are also being explored in Finnair’s cargo
terminal operations. Around 200 people are employed in terminal operations.

Related posts:

1. Finnair and the Union of Salaried Employees reach a compromise solution
2. Yt-negotiations on lay-offs to begin in Finnair Technical Services
3. FINNAIR SUBSIDIARY NORTHPORT OY COMPLETES YT NEGOTIATIONS
4. Finnair Technical Services stabilisation agreement safeguards jobs
5. Finnair subsidiary Northport Oy begins YT negotiations