Unions to meet

| Sat, 09/13/2008 - 03:10

Unions representing all workers in the air transport sector, including pilots, will meet Friday afternoon in what may be a final attempt to avert the demise of national carrier Alitalia.

The announcement of the meeting came after Welfare Minister Maurizio Sacconi said that ''only a common position by all unions will be capable of resolving the situation''.

House budget committee chairman Giancarlo Giorgetti said on Friday that ''it is clear that even the unions must now make some sacrifices because Italians have already given all they can''.

Talks on a rescue plan for Alitalia broke down Friday morning when Compagnia Aerea Italiana (CAI), a consortium of private investors created to acquire a newco with Alitalia's more profitable assets, abandoned negotiations with unions.

According to CAI, the ''conditions do not exist to continue negotiations'' because unions refused to accept what it said were necessary staff and pay cuts.

It was later reported that the preparations had begun to start layoffs at the national carrier.

After the talks broke down one of the Alitalia unions voiced its suspicion that CAI wanted Alitalia to be liquidated so it could acquire only the assets it wanted and at a lower cost.

Last month the Italian government changed Italy's bankruptcy laws to allow Alitalia to be declared bankrupt and then split into a 'bad company' with its loss-making assets and a newco with its more profitable ones.

Augusto Fantozzi was called in to liquidate the 'old' Alitalia while Piaggio Chairman and CEO Roberto Colaninno put together CAI.

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