Alitalia’s future in doubt as staff grounds rescue plan and coffers empty
Rome — The future of Italian airline Alitalia was in doubt on Tuesday after staff rejected a last-ditch restructuring deal, sparking fears that the carrier may be grounded for good. The government had warned that there was no alternative to the plan, which called for 1,700 jobs cut and an 8% salary cut. The company’s coffers are empty, but unions said more than two-thirds of voting employees threw out the proposal which, earlier this month, had been approved by both management and unions, after almost 90% of the airline’s 12,500 employees participated in Monday’s ballot. Italian government ministers expressed "surprise and regret" at the outcome in a joint statement, saying it put the company’s recapitalisation efforts at risk. "At this stage, as we await the decisions of Alitalia’s current shareholders; the government’s aim is to keep the cost to Italian citizens and passengers to a minimum", they said. Meanwhile, Alitalia’s board of directors met on Tuesday, a public holiday in It...
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