MILAN (AFP) - The Italian state airline Alitalia, fighting for its financial survival, said it had reached a wage-freeze agreement for 2004-2006 with unions representing ground personnel.
"The company and the unions hope the state will be able to arrange 'social shock absorbers' for the jobs that will be eliminated," Alitalia said in a statement Thursday.
But unions, according to press reports, said the deal was linked to approval of the carrier's overall rescue plan.
The unions are reported to have withdrawn claims for a wage adjustment to inflation for 2002 and 2003 and to have agreed to freeze wages in 2004 and 2005.
They have also relinquished payment for holidays cancelled in 2005 and 2006.
Press reports added that the job cuts would be discussed at a meeting with the government at the prime minister's office.
Alitalia on Wednesday reached an accord with pilots' unions calling for increased flying time, a cut in the nunmber of pilots assigned to certain routes and the elimination of 289 jobs.
That deal is expected to save the struggling airline about 52 million euros (63 million dollars) a year starting in 2006.
The company's overall rescue plan would see the elimination of about 2,500 ground personnel -- rather than 3,500 as initially foreseen -- and would represent a savings of 150 million euros.
The state, which owns 62.39 percent of Alitalia, wants to reduce its stake to less than 50 percent once the rescue plan is implemented.