company in aviation, with 28,000 employees, of which 24,000 in The Netherlands and
4,000 abroad (KLM, Annual Report 1998/99). Martin Air counts 3,000 employees
whereas Transavia has 600 employees.
Overcapacity and liberalisation in aviation have caused a significant increase in
international competition between and cost pressure on companies (Blyton et al., 1998).
All companies suffer from declining profits in a highly competitive market. In 1999,
KLM for example made losses even though overall transport by KLM increased with 8
percent, freight transport increased with 13 percent and people's transport with 4 percent
(HFD 1 and 4-2-00). The increased costs for fuel and staff, which both are responsible for
30% of cost price, are said to be the major causes of the real decline in profits. These
developments have lead to competitive pressures on employment and labour conditions
as well as to the outsourcing of activities that are not directly related to aviation
(particularly by KLM) in order to reduce costs. For example, in April 2000, KLM placed
the technical service (5,000 jobs) with the American company United Technologies.
KLM has furthermore responded to the recent economic challenges by proposing internal
reorganisation programmes (‘Focus 2000’, recently replaced by the ‘Baseline’ program).
The international competition also has compelled KLM to alliance formation with the
American aviation company Northwest Airlines. An attempt at alliance formation with
the Italian airline company Alitalia has broken down. In recent years, at several times,
talks have been initiated between KLM and British Airways to discuss future
cooperation. Furthermore, in Autumn 2001, the international air transport suffered form
the decline in consumer demand after the Attacks on America. This has had direct
consequences for the collective agreements at KLM, which we will discuss below.
employees in cargo), Globeground (500 employees in passage), Meznies Ogden (480 in passage and cargo),
Dutchport (200 employees in passage), Avia Partner (300 employees in passage), and Servisair (120 employees in
passage and cargo at Rotterdam Airport) (source FNV).