Mexico City (apro). With group contracts re-negotiated and 2,500 workers fired, Aeromxico intends to save 685 million pesos in the next four years.
According to information released by EFE, the Mexican airline is increasing the savings mentioned in documents handed over to the New York Southern Court as the company filed for Chapter 11 of the United States Bankruptcy Code, available Friday, April 6.
He said that the collective savings represented in the new collective bargaining agreements, which amount to about $ 685 million over the next four years, would provide the company with the ability to successfully compete in the highly competitive post-emergency market.
The documents were released after Aeromxico announced in January an agreement with Asociación Sindical de Aviacion Sobrecargos de México (ASSA) and Asociación Sindical de Pilotos Aviadores de México (ASPA), to amend their collective contracts in light of the financial restructuring.
At the time, the company did not provide details of the negotiations, but ASPA revealed in a separate statement that the pilots had accepted reductions totaling $ 350 million in collective contracts for the next four years.
Now the company specifies that the negotiations involved 9,410 active and union-affiliated employees in Mexico, with conditions that will affect their wages, benefits and working conditions for a period of four years.
In addition to ASSA and ASPA, it includes the Federation of Aviation Industry Workers, Similar and Related Communications of the Republic of Mexico (STIA), and the National Confederation of Workers in Airline Service, Transportation and Similar and Related Services (Independence).
With the negotiations, the company avoided a strike and met the conditions for reaching the final $ 625 million tranche of the $ 1 billion total of financing known as DIP Financing.
The company said that these agreements have the support of the airline’s pilots, flight attendants and field staff who approved them by their personal and direct vote, which means that a strike and major disruptions are unlikely during the new collective agreements.
The major airline in Mexico recorded a 54.2% decrease in passenger transportation in 2020, as it was mandated last June with Chapter 11 of the US Bankruptcy Code in a court in New York, to achieve a financial restructuring.
It is estimated that the company laid off about 2,500 workers, including pilots, flight attendants and ground personnel.
Aeromxico is confident that the refinancing will allow it to weather the Coronavirus crisis.
The new collective agreements represent a major step in the company’s financial restructuring: they unlock the necessary cash flow, provide a competitive forward cost structure and solve an uncertain and costly lawsuit, entered into in the document that was submitted to the New York South Court.
(With information from EFE)