KLM Royal Dutch Airlines and its five ground handling unions have negotiated a new 18-month collective labor agreement (CLA), which will contribute significantly to Air France-KLM’s Perform 2020 program.

Following “lengthy and intensive” talks, KLM said it came to a “mutually acceptable outcome” with the five labor groups on the night of April 9-10.

“The results of these negotiations will now be presented to the member councils of the five trade unions, who will issue their recommendations,” KLM said.

KLM has committed to no compulsory redundancies until the conclusion of the new CLA in July 1, 2016, so long as its voluntary redundancy plan proves sufficient. The two sides will meet at “a later date” to negotiate a CLA for the remainder of the Perform 2020 plan, from July 1, 2016 to Jan. 1, 2020.

“This confirms that the unions are prepared to share responsibility and hereby underscore the need to cut costs. These cost-cutting measures are essential in enabling us to keep investing in our combined future in these challenging times. I truly appreciate and respect the flexibility that everyone has shown in these demanding collective labour contract negotiations,” KLM EVP HR & industrial relations Aart Slagt said.