Czech Republic - Union criticizes Czech Airlines lay-offs - August 25, 2009

The state-run air carrier Czech Airlines (CSA) will not sell any property until the privatisation process is completed, supervisory board chairman Ivan Kocarnik told the press after a board meeting. He did not, however, rule out that parts of the company may be sold in the event that the state does not manage to privatise CSA.

The board also acknowledged the layoff of 860 out of CSA's current 4,600 staff that is to take place in the next seven months. A major part of the staff to be dismissed is formed by pilots and stewardesses. This measure is to save up to CZK 800 million (Euro 31.5 million) next year, Kocarnik said.

Trade unions are monitoring the situation in the firm. Pilots' union CZALPA leader Filip Gaspar said he welcomed the decision not to sell any assets until the end of privatisation, but he critizised the planned layoffs. Pilots are willing to go on strike to protest against the layoffs, he said. Earlier, CZALPA agreed to a 6.5% wage cut in order to save jobs.

ČSA not to sell any property until privatisation is completed at

Czech Airlines cuts wages in preference to dismissals at

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