SNPVAC strike - January 25 to 31

TAP deeply regrets the decision taken today at the SNPVAC General Assembly to maintain the seven-day strike notice from 25 to 31 January and the serious consequences it will have.

At stake were 14 points demanded by the SNPVAC. Twelve were accepted, which represents 85% of the proposals in question.

TAP depends on the confidence that customers have in the services we provide.

Competition in this global industry is very strong and the Company competes in the market with other companies on all the routes it operates. Any factor that undermines this customer confidence in TAP jeopardizes the path of recovery that we have been following and all the joint effort and sacrifice that the employees have made.

Stability is fundamental to the company. And it must be built with results and balance in situations that imply changes in the path taken to recognize the efforts of the workers and accommodate the needs to maintain the company's competitiveness.

It is this sense of compromise, of common sense, that we have been trying to achieve, through the permanent dialogue with the unions.

This was the second SNPVAC GA held in a short period of time and comes in the wake of a recent two-day strike, which had a negative impact on operations, on passengers' expectations, and 8 million in the company's accounts. 

There was, however, a considerable advance in talks between TAP and SNPVAC, with the Company having accepted most of the demands presented, as we have already mentioned. For example, regarding the posting of an additional cabin crew member on Airbus A321LR medium-haul aircraft, in order to improve the service and workload of these professionals.

Excluded were only two measures with greater weight and with the following rationale:

Recognition of entry levels and respective payments (process CAB0 - CAB1); not accepted, due to this issue currently being dealt with in court, with some cases already decided in favor of TAP.

Adding a Purser on long-haul aircraft (Airbus A330); not accepted, since the removal of this Crew Member was duly approved by the Union and its Members, being incorporated in the Emergency Agreement, and today there is no flaw or doubt of adjacent interpretation. The giving in of this measure would mean several million euros, added to the effort that all the accepted points already represent, besides putting TAP in a competitive disadvantage with its European peers that today have one less element as well.

In parallel, and as already mentioned by the CEO, a reward for all TAP workers was being analyzed, following the results obtained, which would soon be announced, and which has now been called into question. With this new stoppage, 1316 flights will be cancelled, and 156 thousand passengers affected, which represents a total estimated direct cost of 48 million euros (29.3 million in lost revenue and 18.7 million in compensation to passengers). Losses of an additional 20 million are also expected due to the potential impact on sales for other days and sub-optimization of other flights with reaccommodated passengers.

The decision to go ahead with a strike from January 25 to 31 demolishes all the work done to bring the parties together, leaving thousands of TAP customers with their plans jeopardized and seriously affecting the Company's results. In a year that is especially important for the implementation of the Restructuring Plan, and which faces added challenges, such as rising inflation, fuel prices and uncertain demand, the decision taken by the SNPVAC General Assembly is unfortunately an obstacle on the path we have been following.

It would have been basic common sense and justice for all of us, cabin crew and other TAP workers, its customers, partners and shareholders, which is all of us, to have avoided throwing away all the collective effort that has been made so far and that was so well on track to reach a good port.

We reaffirm that we will maintain our focus on the implementation of the Restructuring Plan, a fundamental prerequisite to obtaining results and safeguarding the future of the company. 

In an attempt to mitigate the effects of this strike on our passengers, TAP is building a contingency plan to minimize the inconvenience caused, namely by adjusting the operation, as well as by making more flexible changes to travel schedules and ticket refunds.