City of Mexico (APRO) .- By re-negotiating collective agreements and laying off 2,500 workers, Aeromixio wants to save 685 million pesos over the next four years.
According to information released by EFE, the Mexican airline has raised savings in documents filed in the Southern Court of New York, where the company filed for Chapter 11 of the U.S. Bankruptcy Code, available this Friday, April 6th.
The joint venture savings mentioned in the new joint venture agreements of about $ 685 million over the next four years should give the company the ability to successfully compete in a highly competitive emergency market, he said.
Aeromicxico later in January announced their joint venture agreements with Associate Syndicate de Aviasian Sobregorcos de Mexico (ASSA) and Associate Syndigale de Pilatos Aviatoros de Mexico (ASPA) considering their financial restructuring.
At the time, the company did not elaborate on the talks, but ASPA revealed in a separate statement that the pilots had agreed to reduce the pilots to $ 350 million in collective agreements over the next four years.
The company now states that negotiations involve 9,410 active and unionized employees in Mexico, with conditions affecting their wages, benefits and working conditions for a period of four years.
In addition to the ASSA and ASPA, it includes the Workers’ Union of the Aeronautical Industry, the Similar and Related Communications of the Republic of Mexico (STIA), and the National Labor Union in Air Lines, Transport, Services, and Related Services. (Freedom).
Through negotiations, the company met the conditions for access to the final installment of $ 625 million, known as the DIP fund, from a total of $ 1 billion, excluding a strike.
The contracts were approved by the company’s pilots, flight attendants and ground staff by their personal and direct votes, which means that strikes and massive disruptions are unlikely during the new collective agreements.
Mexico’s flagship airline had a 54.2% drop in passenger traffic by 2020, reaching a financial restructuring for Chapter 11 of the U.S. Bankruptcy Index in a court in New York last June.
The company has laid off an estimated 2,500 workers, including pilots, flight attendants and ground staff.
Aeromixico hopes the refinancing will allow the Govt-19 crisis to be overcome.
The new collective agreements represent an important step in the company’s financial restructuring: they open up the necessary financial liquidity, provide a forward competitive spending structure and resolve uncertain and costly cases, which was finalized in a document submitted to the Southern Court of New York. .
(With information from EFE Agency)