The resignation of the controversial chairman of the Ruben Berta Foundation (FRB), the employee fund which owns a majority share in Varig, is the clearest signal yet in an otherwise confused set of messages from unions at the Brazilian flag carrier about their willingness to accept the airline's ongoing integration with TAM.
What prompted FRB chairman Yutaka Imagawa to step down is not clear, but Varig's chief executive Manual Guedes probably insisted upon it. Imagawa was behind the FRB's successful opposition last November to a financial rescue plan for the troubled carrier. Insiders claim that Imagawa and the FRB, which owns 87.5% of Varig, opposed that plan because it would have diluted the foundation's stake below a controlling level. The FRB, which exists for the benefit of Varig employees, could scuttle Varig's proposed integration with TAM on the same grounds.
Despite the FRB's apparent acquiescence in the TAM deal, Varig's unions continue to voice concerns about it, fearing that the move will cause layoffs.
Source: Airline Business