Union accuses airBaltic of breaching collective agreement during mass layoffs

The Latvian Aviation Union (LAA) has accused airBaltic, Latvia's national airline, of failing to respect its collective labour agreement during a mass redundancy process. The union says that this week around 200 flight attendants and 100 pilots begin receiving notices of planned dismissal, while some crew members who keep their jobs are being asked to sign contracts in a new version. The company rejects the allegations.

The union's claims

According to LAA, employees were told that those who do not agree to the new contracts cannot continue working under existing conditions. The union sees this as effectively ending their employment, in line with the airBaltic board's decision of 27 October. It alleges the contracts involve full or partial waiver of collective agreement rights on working and rest time, as well as of Labour Law protection against night work for parents of children under three. In return, higher pay is offered.

LAA says the required consultations on significant changes to working conditions have not taken place. There is also a dispute over protecting union members: the union says the collective agreement signed on 22 May 2009 allows a member to be dismissed only with the union's consent, while the company allegedly applies this only to those who have been members for more than six months. The company's response to LAA's amendments to the draft contract has not yet been received.

The company's response

airBaltic representative Augusts Zilbert told the news agency LETA that the contracts are not new and are not tied to the layoffs: this version has applied since 1 January 2025, and most of the employees concerned have already moved to it voluntarily. He said the terms include changes to working and rest time organisation, but also a base pay increase and extra days off. The company cites Section 20 of the Labour Law, which permits deviations from a collective agreement when contract terms are more favourable to the employee.

The company plans to cut roughly 100 pilots and 200 cabin crew, though final figures may change. It links the reduction to next year's planned flight volume.

Background

airBaltic is undergoing US Chapter 11 bankruptcy protection proceedings. A court has approved financing of up to 350 million euros to keep operations running. The process is expected to end in mid-2027. The Latvian state owns 88.37% of the airline's shares.