4.6 A case study of collective bargaining at KLM.
At National Dutch Airlines KLM there are four different collective agreements, for pilots,
crew flight engineers and ground staff.23 The agreements are negotiated between the
KLM-management, department Industrial relations, and a varying combination of trade
unions. The mission of the Industrial relations department is to support and advice
business-units to arrive at productive and profitable intermediation with employees. At
KLM the department Human Relations, is involved with the function classification
schemes, legal services and the preparation and monitoring of labour conditions, wages,
pension and insurances. The social policy at KLM includes the following five aims: to
continue employment levels; to compensate employees with appropriate rewards, to
support career development and promotion from within the internal labour market, to
provide good working conditions, and to take co-determination seriously.
The collective agreements at KLM are grown-up, they are the product of many years of
negotiations (‘cutting and pasting’) in which was attempted to regulate most important
issues. For example, the KLM collective agreement for ground workers consists of
thirteen chapters and 20 annexes. Issues dealt with in the agreement include, definitions;
coverage; obligations for the actors involved; obligations for KLM; the employment
relationship; obligations regarding the employment relationship; spot of activities;
working and rest hours; holidays and leave; financial affairs; assistance and appeal;
disciplinary ordinances; and concluding stipulations. In the annexes issues are dealt with
such as standard model contracts, working hours, function categories; compensation for
irregular hours; training; company uniform; disability; extraordinary leave; residence;
study facilities.
KLM does take national-level agreements in the Foundation of Labour into account in
collective bargaining (“it would not be appropriate if we did not do that”) but at the same
time sets out its own course. Management aims to develop the employment relations and
labour contract allowing for more responsibility and accountability for the individual
employees, to make management more output-based, to develop rules on the procedures
in stead of on the contents of employment conditions, to allow for more individual
choice, and to enhance flexible staffing policies. The national unions do also follow the
central guidelines about wage setting of their national copula federations, but are more
critical about individualization of employment relations. The categorical unions represent
exclusively the interests of their rank and files. According to an FNV-spokesperson for
ground staff, the wage-level, working hours (on average 39 hours per week), the rosters,
work stress, pensions and childcare facilities are at the top of the bargaining agenda. It
should be added that individual employees may select some employment conditions
themselves, there is for example individual choice in the (pre-) pension rule, the
compensation of additional hours, the assurance for surviving relatives and the possibility
to save part of the salary.
The unions have an extensive role at KLM, not only in collective bargaining on
employment conditions but also in company restructuring. ‘External’ negotiations, i.e.
At Martin Air there are four collective labour agreements as well, Transavia has three agreements. All ground
handling companies have separate collective agreements.
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