Court decides in KLM’s favour in its dispute with pilots’ union over pensions

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The Amsterdam District Court today ruled in favour of KLM in the pension dispute concerning KLM’s cancellation of the protocol regarding Structural Surpluses and Deficits (Structureel Overschotten en Tekorten or STROT) with the VNV (the Dutch Airline Pilots’ Association) starting 1 December 2016.

KLM views the court’s decision as a vindication of its position concerning the new pension legislation of 1 January 2015. KLM does not believe that it must automatically bear the consequences of the legislation.

Cancelling the STROT protocol with the VNV and the financing agreement with the Pension Fund was an extreme measure for KLM. The unintended consequences brought about by changes to the legislation, combined with low interest rates, would force KLM to make disproportionately high supplementary payments, that would impact the company’s financial situation and endanger jobs in the future.

The judgement of the Court does not give clarity yet on the potential derecognition of the pension asset associated to the KLM Flight Deck Crew Plan (€ 553 million by 30 June 2016); this will be dependent on the outcome of the discussion with the Pilot Union and the adjustments that will be made to the financing agreement.

KLM is confident it will be able to arrive at a suitable solution with the VNV.

Amstelveen, 27 September 2016

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