TAP reaches agreement with all unions

Portuguese flag-carrier TAP has reached an understanding with all workers’ unions on the emergency agreements, which will run until the end of 2024, according to a communiqué the company sent to employees.

In the message sent to the employees on Sunday, seen by Lusa, the Board of Directors of the Portuguese airline company said that it is with satisfaction that there is an understanding with all the unions representing the workers regarding the emergency agreements that will be in force until 31 December 2024 or until the conclusion and implementation of new Company Agreements between the parties.

“Although some unions will, of course, have to ratify these agreements with their members, we want to thank them for the open, committed and constructive way in which they negotiated and worked to reach an understanding, their sense of urgency and their contribution to the defence of the common interest: the company’s survival and sustainability,” the message said.

Miguel Frasquilho, chairman of the Board of Directors, and Ramiro Correia, chairman of the Executive Committee, who signed the message, said that everyone would prefer not to be going through this moment, underlining that in the face of this challenge, which is global, it has become clear how essential this remarkable achievement of reaching an agreement with all the unions is for the future of TAP, in such a short time.

“We have travelled together, in a climate of pacification and social understanding, the path of restructuring and recovery of TAP, while the talks with the European Commission, to which this new reality is going to be subject,” they said.

The company left a thank you note for the invaluable contribution of the Ministry of Infrastructure and Housing, which was an integral part of the whole negotiation process and a determining factor in many moments.

“This is a step that not only meets the understanding reached, but is critical and fundamental to the optimisation of labour resources, in the adverse operational and economic context arising from the evolution of the pandemic and the measures taken to contain it, as well as in the context of the Restructuring Plan in progress,” the company recalled.

The analysis of the level of adherence to voluntary measures leads to the implementation of other measures necessary to adjust the labour cost structure compatible with the current and projected level of operation and revenue.

TAP’s board said it is aware that the revenue shortfall over the next few years will be colossal and estimated at several billion euros.

“We also remember that we are implementing a vigorous cost reduction in the various areas of the company, which will allow TAP to have financial benefits of around €1.5 billion by 2025, as well as working on measures for organisational efficiency, increased productivity and the generation of additional revenue,” Miguel Frasquilho and Ramiro Correia stressed.

The chairmen of the board and the Executive Committee said that this is a very tough and demanding plan, made up of difficult but necessary measures to preserve TAP and ensure the maintenance of as many jobs as possible.

The message sent to TAP workers ends by saying that the agreement reached with all workers’ unions is now beginning its way to approval by the European Commission, adding that TAP and the ministries of infrastructure and housing and finance will do everything possible so that, as soon as possible and with the best result, it can be concluded.