Finnair Warns of Pilot Job Cuts as Labor Talks Intensify

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Finnair said Friday it is entering a new stage of labor negotiations with its pilots, with job cuts not being ruled out. The carrier highlighted possible “personnel reductions or furlough” of up to 90 pilots, ahead of the talks restarting on February 12. 

The discussions come at a delicate time with deadlock between airline management and the Finnish Transport Pilots' Association (SLL).

The parties are in extended negotiations seeking a new collective labor agreement. The previous terms were agreed in April 2021 and expired at the end of September 2024. The pandemic-era deal included a series of structural changes including a switch in salary structure and adopting more seasonally aligned working practices. 

However, the lack of a new agreement led to overtime and standby bans among members of the SLL union. This severely disrupted Finnair services and resulted in hundreds of cancellations on regional and long-haul flights. The bans were lifted during the Christmas peak but resumed in early January. 

Qantas Deal in Jeopardy?

In a statement on Friday, Finnair singled out a leasing contract in Australia as being at particular risk. In May 2023, it was announced that the Finnish carrier would lease two Airbus A330 planes to Qantas. These aircraft – staffed by Finnair crews but flying on behalf of the Australian airline – were otherwise surplus to requirements in the regular Finnair network.

Unlike its newer A350s, the closure of Russian airspace means the A330s cannot fly nonstop from Helsinki to Far Eastern destinations. The innovative deal sees Finnair crews fly the longer-range A350 to Singapore and Bangkok. After a layover, they continue to Sydney with the A330 for Qantas before doing the journey in reverse back to Helsinki with Finnair.

The Finnish airline says the pilot’s union has extended the standby ban to cover these Sydney flights, as well as connecting services. Without directly naming Qantas, Finnair raises the possibility of ending the Australian deal if an agreement with the union cannot be found. The initial two-year contract with Qantas is due for renewal this year.

“This impacts Finnair’s ability to operate the flights as agreed. Finnair has initiated discussions with its partner on future options for the cooperation agreement, with one option being termination of the agreement. This would have a direct impact on the amount of work available to Finnair pilots,” said the Finnair statement.

Finnair Says 90 Jobs at Risk

The Helsinki-based carrier says around 90 pilots support the Australian collaboration from a total of approximately 1,000 pilots. It is implied that these posts may be at risk of redundancy or furlough if an agreement cannot be reached. 

Speaking on Friday, Kaisa Aalto-Luoto, Finnair's Chief People Officer said: "It is sad that the pilot union’s prolonged industrial action has led to a situation where we have to start change negotiations. Today is a tough day for all of us at Finnair. 

“In our 101 years of history, we have never needed to reduce pilot positions due to operational reasons. Even when the Russian airspace closed and fundamentally changed our operating environment, we succeeded in securing employment for our pilots with collaboration arrangements," she added.

With negotiations soon entering a sixth month and independent conciliatory authorities involved since November, the dispute is becoming increasingly heated.

Finnair wants to include standby duty in the revised employment contracts. However, the union suggests that this should be on a voluntary basis. The airline describes standby as “an established practice in the industry” and an “essential part of ensuring reliable operation.”

Finnair is not alone in facing labor unrest. Last year, Boeing production was crippled by a 53-day strike by machinists in its Seattle-area factories. Major carriers including United Airlines, Lufthansa, and Alaska Airlines have also been navigating union disputes to varying degrees of success. 

Skift has contacted the SLL union and Qantas for comment.