Turkish Airlines announced that the wage negotiations between themselves and Hava Is (related workers' union), which was supervised by an official negotiator appointed by the State, ended in a failure. The official negotiator will prepare a report regarding the talks, which will be submitted to Ministry of Labor. Reportedly, according to newsportal airporthaber.com, the main reason behind the failure in the talks is the union's insistence on the rights of 305 employees, who were laid off in a one-day strike on May 29, 2012.

The failure in the negotiations between Turkish Airlines and Hava-Is is nothing new as the last four-five talks were also dead locked. Recall that employees' wage negotiations covering the 2011-2012 period were only resolved after the Superior Council of Arbitrators took over to mitigate a solution and we believe that a similar process could take place this time as well. Thus, we perceive the news as neutral for Turkish Airlines' share performance for the time being.

Source: bne