The pilots of Finland's national carrier Finnair on Tuesday rejected a pay deal proposed by the national mediator, the head of the employers' organization said.
"The employer was ready to accept the deal, but pilots refused it," said Peter Forsstrom, a senior official from the employers' organization Palvelualojen Toimialaliitto.
Forsstrom said there was no schedule for further talks with the pilots, who had not announced plans for industrial action.
He said the proposal would have included pay increases of 5 percent, 4 percent and 3.1 percent per year for the next three years, with some additional terms meaning a total cost impact of about 15 percent. Pilots are asking for over a 24 percent increase for the three year period, he said.
Glitnir said in a research note on Tuesday that a 15 percent pay increase would dent Finnair's annual operating profit by EUR20 million euros (USD$32 million), starting next year.
