KLM Reaches Draft Labor Agreement

AMSTELVEEN, November 26, 2002 å—Negotiation delegations from KLM Royal Dutch Airlines and union organizations CNV BedrijvenBond, De Unie, FNV Bondgenoten, NVLT, VHKP, VKB, VNC, and VNV have reached an agreement concerning the content of distinct collective labor agreements between April 1, 2002 and March 31, 2004. The accord is subject to approval by the unionså‘members.

On February 1, 2003 and again on October 1, 2003 salaries will increase by 3.0% and 2.5%, respectively. These increases are being described as cost compensations. Together with the salary for December, staff will receive a one-time gross payment which, calculated over a 12 month period, will amount to 2.75% of the annual salary. The term ‘annual salary’ refers to 12 times that which was paid out on November 30, 2002 plus 1/12 of any additions based on age.

It has further been agreed that, on April 1, 2003 ground technicians will be given full responsibility for maintaining the necessary authorization based on studies in their own time. As compensation, KLM will pay for one authorization per aircraft type per year.

The compensation will be determined according to a sliding scale with a maximum of € 2,075 per year for three aircraft type authorizations and paid out retroactively with the salary for December. Furthermore, all parties will work together to optimize the organizational structure within Engineering and Maintenance.