No agreement between SWISS and Aeropers

30 June 2006

SWISS and the Aeropers pilots’ union have been unable to conclude a new forward-looking Collective Labour Agreement after 17 months of intensive negotiations. Aeropers has declared that the negotiations have failed. The existing Collective Labour Agreement with the Airbus pilots expires on June 30.

The negotiated offer SWISS made to Aeropers accommodates the concerns of employees to the greatest possible degree, continues to provide attractive conditions of employment and is geared toward growth. With respect to key points on working conditions, SWISS expects Airbus pilots to work an average maximum of 19 days per month, take six (rather than 7.5) weeks of vacation annually, and to make reasonable concessions on overall remuneration. All other employee groups at SWISS have already made a contribution in recent months toward lowering costs and increasing productivity. In the interests of its customers, of all its employee groups and of the economy of Switzerland as a whole, SWISS wants to create the foundation for sustained growth.

“We want to continue SWISS’s positive development, achieve sustainable growth in our rapidly changing and highly competitive market environment, and offer secure jobs,” commented SWISS CEO Christoph Franz regarding the outcome of the negotiations with Aeropers. “To accomplish this, we need substantial contributions from all employee groups, Airbus pilots included.”

Both parties demonstrated flexibility during the negotiations. Despite concessions from Aeropers, however, a mutually acceptable solution could not be found on fundamental issues. SWISS acknowledges this fact and is now considering how next to proceed.

Flight operations continue to operate normally.