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The latest turnaround plan for the ailing airline envisages cutting more than 2,000 jobs among ground staff and reducing flight personnel’s salaries by up to a third in a last-ditch attempt to make the company profitable. The government had hoped to win union backing for the plan by April 13, so that investors in the airline, which include Etihad Airways with a 49 percent stake flights and Italy’s top two banks Intesa Sanpaolo and UniCredit, could launch a cash call on the following day. But the unions, whose support for the plan is crucial for shareholders to unlock fresh financing, said they were unwilling to accept any further sacrifices. “There is still a wide gap between the sides both on job cuts for ground staff and reducing flight personnel’s wages,” a labour union source said. Alitalia CEO Cramer Ball has called the planned cuts “painful but necessary”, but workers say they want more evidence that the restructuring would bring the promised results, especially given a string of failed revamps. “How can we make concessions when we don’t even know where the plan will take us?,” Giancarlo Serafini, a member of the Uiltrasporti union delegation attending the talks, said this week. Some union leaders said there was an expectation among workers that the government would not let a company employing 12,500 people fail. Alitalia has made an annual profit only a few times in its 70-year history. Despite several overhauls and cash injections over the years, it is losing at least half a million euros a day and could run out of cash in coming weeks unless shareholders agree to pump in more money, sources say.
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