KLM pays off debt to the government Changes in the National Police Unit

KLM pays off debt to the government

In early 2020, everyone around the world, willingly or unwillingly, went into isolation, quarantining themselves in their homes, states and countries. Travel plans, whether business or leisure, were cancelled for the foreseeable future and the industry affected the most by it was aviation. The longer the planes stayed on the ground, the harder it became for the airlines to sustain themselves.

Some companies though, were luckier than the others – one of them being the Dutch airlines, KLM. Like many other airlines, KLM came pretty close to bankruptcy. Thankfully, it was able to borrow a total of 942 million euros from the Dutch state and a group of banks. The airline has remarkably managed to pay off its debts in record time. In May and early June this year, KLM paid off 311 million and 354 million euros to lending banks, and by the end of June, the 277 million euros borrowed from the Dutch state were transferred to The Hague as well.

Money with strings attached Although the government helped KLM willingly and even acted as a guarantor for 90% of the loans from banks, the money did come with strings attached. In exchange for the financial support, the Dutch government imposed certain conditions: • As long as KLM receives financial support, no bonuses and dividends will be paid. • KLM maintains the quality of the network from Schiphol. • KLM will reduce the number of night flights from 32,000 to 25,000. • KLM will reduce CO2 emissions by 50% per passenger kilometre by 2030. • From 2030, 14% of KLM’s fuel will be sustainable. • Wages for higher-paid KLM staff will be reduced by 5 to 20%; the strongest shoulders will bear the heaviest burden.

KLM was initially promised a financial support package of 3.4 billion euros, which would stay in effect until 2025. And even though the company has managed to pay back its Covid loan relatively quickly and claims to have enough financial means for the coming years, due to the ongoing international conflicts, rising costs, continuing pandemic and high inflation, the airline does not want to cancel the aid package. This means it will have to continue to meet the state’s conditions. However, the company already managed to upset Minister of Finance Sigrid Kaag this spring, by raising wages by 5 percent.

Why is KLM so important? It’s common knowledge that KLM enjoys certain privileges and liberties extended to it by the Dutch government. To any outsider, it might seem unreasonable or even a bad investment to keep pumping money into a business that keeps getting into financial trouble. However, KLM is not just another airline, but a flagbearer for the Netherlands. The company was started in 1919 by eight wealthy Dutch industrialists and was awarded the title ‘Royal’ by Queen Wilhelmina, even before it was founded. The official full name of the airline is KLM Royal Dutch Airlines – which in itself should say enough about its importance to the state. However, there is more to it than just the sentimental value.

Not only is the Dutch government a shareholder in the Air France-KLM, holding an impressive 9.3% of the shares, but it is also important for the national government to have a say in decisions about KLM. The Netherlands enjoys an open economy and therefore it’s important for the country to maintain a connection with the rest of the world via Schiphol and KLM. Together the airport and the airline provide thousands of jobs. KLM is also the biggest user of Schiphol Airport. This network also makes the Netherlands an alluring place for foreign businesses, thus attracting capital to the country and providing jobs.

On average, KLM has a brush with bankruptcy once every decade. But the state has come to its aid time and again and the blue wings are kept in the air at all costs.

Written by Priyanka Sharma

Changes in the National Police Unit

New developments in the core structure of the National Police Unit are high on the government’s agenda. The cabinet wants to put an end to a long-standing debate in the Unit. So far, the decision is to split the institution into two departments: one for national investigations and one for national operations and expertise. “This is an intervention that we have been advocating for years: the introduction of a separate organization for national investigation - a kind of Dutch FBI,” the National Police said. The decision comes after advice of the Schneiders Committee, according to AD newspaper. There will be changes in how the National Police Unit is run, with a more logical structure organized in teams with clear remits, instead of the current chaotic structure. The number of managers will be reduced in order to allow the expert worker within the force more control over their jobs.

However, Bernt Schneiders, chairman of the committee, says there is also a need for fundamental changes because of problems in the unit’s culture. His committee paints a worrying picture of the National Police Unit. There have been reports of an unsafe work culture for some time. Three employees who were involved in undercover investigations committed suicide after conflicts and bullying in the workplace, while there have also been reports of sexual harassment and racism within the police, as well as ethnic profiling by police officers against citizens.

It has been reported a culture of bullying and a toxic atmosphere exists in a number of departments. Some complain that the organization pays too little attention to personal circumstances and the potential of employees is insufficiently utilized. The police has been working to attract women and minorities as police officers for years, but many resign quickly when confronted with the old-fashioned ‘boys will be boys’ culture. The main issues revolved around some of the higher rank positions within the unit, who have been unable to counter the toxic culture in some units. Some top police officers will have to resign, as they do not want to or cannot participate in the necessary change. In the future, officers who commit racist or sexist offences may be fired, rather than the ‘talking-to’ they now receive.

The committee therefore advises to set explicit rules for desirable and undesirable behaviour, to draw up appropriate leadership profiles and to inspect current high rank officers. “In the end, tensions in the workplace rose to such an extent that tackling them literally became a matter of vital importance,” said National Police board chairman Jan Struijs. According to him, the first concern during the upcoming drastic reorganization is that the top officials treat the interests of the employees with sensitivity. “Think of the future prospects of the employees directly involved in the police, but also of the extra burden that they and other colleagues have to deal with. After all, the store must remain open during the renovation.” future of the National Unit. An important step towards an organization with more focus and a recognizable profile that can handle today’s security issues.” Yeşilgöz has asked the Schneiders Committee to oversee the culture shift.

“The changes at the National Unit affect the entire police force,” said chief of police Henk van Essen. In order to implement the reform, Van Essen must come up with a transition plan by 1 October at the latest.