Nov. 1—AMSTERDAM — A labour dispute at Dutch air carrier KLM is threatening the company's ability to access state aid for businesses suffering during the coronavirus crisis, Finance Minister Wopke Hoekstra said on Sunday ahead of a fresh round of talks.
Like so many other airlines, KLM has seen its outlook decline amid the ongoing pandemic, as many passengers opt not to fly for fear of becoming infected within the tight confines of a plane.
That has prompted the Dutch government to line up emergency aid to keep KLM aloft, mimicking similar plans by other countries to save their national carriers.
But Hoekstra said a key pilots union is refusing to consider long-term salary cuts that are required before the money can be disbursed, potentially upsetting the whole deal.
"It's very disappointing and very risky," he said. The aid package amounts to about 3.4 billion euros (3.7 billion dollars). Unions representing cabin personnel and ground crew workers have already agreed to the pay cuts through 2025 upon which the aid hinges.
KLM has already received 1 billion euros in aid and says it cannot survive without the rest of the assistance, potentially endangering 30,000 jobs.
"KLM is now in its most serious crisis in its 101-year history," said KLM boss Pieter Elbers, calling on the union to acquiesce. "Receiving this assistance is not a luxury, but a necessity."
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