EMCC European Monitoring Centre on Change

Australian Airlines

Company/Organisation:
Australian Airlines

Geographic Location

Country: Austria

Company

Sector: Transportation / storage
Transportation and storage
51 - Air transport
Number Employed: 7700

Employment Effects

Announcement Date: 06-10-2006
Planned Job Reductions min: 350
Planned Job Reductions max: 350
Type of Restructuring: Internal restructuring
Employment Effect Start: 06-10-2006
Foreseen End Date: 01-12-2002

Additional Information

In the course of ongoing restructuring of the Austrian Airlines (AUA) since 1997, the company's management on 6 October 2006 notified a planned staff reduction by some 350 employees. According to Alfred Ötsch, the company's CEO, the management aims to reduce the size of the workforce without direct dismissals but by 'natural leaving' and hiring out of personnel. Moreover, the management wants to introduce a variable pay system and more flexible working hours based on an annualised scheme in order to save on overtime payments. These measures would be necessary to arrive at balanced finances. The works council is opposed to these plans and has threatened industrial action.