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Alitalia workers reject rescue plan

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By Euronews
Alitalia workers reject rescue plan

<p>The loss-making Italian airline Alitalia is again on the brink of bankruptcy.</p> <p>In a ballot, two thirds of its workers have voted to reject a management restructuring plan.</p> <p>The agreement to lay off 980 full-time staff plus hundreds more contract workers and reduce flight crews wages by around eight percent had been worked out between the company and the unions – who had urged a yes vote. </p> <p>“This was a painful vote but a determined one against a company that until now has done little to fix its issues,” several unions said in a joint statement.</p> <p>They added that it was hoped shareholders and the government would do everything possible to prevent decisions that could have traumatic consequences.</p> <p>Workers had repeatedly said they were unwilling to accept any further sacrifices when Alitalia’s labour costs were already among the lowest among the legacy airlines in Europe.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Italian airline Alitalia has reached its final destination – yet again <a href="https://twitter.com/Unmack1"><code>Unmack1</a> <a href="https://t.co/BNSKV1iUKC">https://t.co/BNSKV1iUKC</a></p>&mdash; ReutersBreakingviews (</code>Breakingviews) <a href="https://twitter.com/Breakingviews/status/856853050677448705">April 25, 2017</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p><strong>Overhauled or wound up</strong></p> <p>Alitalia had warned that union backing was essential to obtain fresh funds from shareholders, which also include Italy’s top two banks Intesa Sanpaolo and UniCredit.</p> <p>A shareholders meeting is now due to be held on April 27 and Alitalia is likely to be put into special administration.</p> <p>The Italian government could then appoint a commissioner to assess whether it can be overhauled or should be wound up.</p> <p>It is reportedly losing at least 500,000 euros a day and will run out of cash in just weeks.</p> <p>Abu Dhabi-based Etihad has been trying to turn around Alitalia since buying a 49 percent stake in 2014 but the airline is facing strong competition from low-cost airlines and high-speed rail services. </p> <blockquote class="twitter-tweet" data-lang="en"><p lang="und" dir="ltr"><a href="https://twitter.com/hashtag/alitalia?src=hash">#alitalia</a> <a href="https://t.co/FYbFuBU2Q6">pic.twitter.com/FYbFuBU2Q6</a></p>— camilla conti (@petunianelsole) <a href="https://twitter.com/petunianelsole/status/856839999966392320">April 25, 2017</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>