Air France CEO resigns after employees reject wage offer

Air France CEO resigns after employees reject wage offer

PARIS (AP) — Air France-KLM CEO Jean-Marc Janaillac introduced his choice to resign Friday as Air France crews and floor employees held their 13th day of strikes over pay and rejected the corporate’s wage proposal.

In an digital vote Friday, Air France employees rejected administration’s offer for a 2 p.c pay rise this 12 months and extra 5 p.c increase from 2019 to 2021. A report confirmed that 55 p.c of responders voted in opposition to the proposal.

Unions desire a 5.1 p.c pay rise this 12 months, arguing that their wages have been frozen since 2011 amid restructuring and noting that the corporate’s earnings are up.

The firm argued it should protect its capacity to remain aggressive in opposition to low-cost airways and big-spending Mideast and Asian carriers.

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“This is a huge waste that can only make our competitors rejoice,” Janaillac mentioned of the failed vote.

Air France-KLM shares fell earlier Friday after the corporate introduced the strikes had already price the airline a minimum of 300 million euros ($359,000). Air France-KLM additionally forecast a “notably” decrease earnings this 12 months in comparison with 2017.

Janaillac, who had been within the put up since July 2016, met with the corporate board Thursday to debate the quarterly outcomes and the forecast.

After a protracted monetary droop, Air France-KLM earnings climbed final 12 months because it expanded its international alliances and launched a brand new funds airline. The progress was helped by years of job cuts and different restructuring efforts.

Janaillac warned final 12 months that risky gasoline costs and geopolitical dangers might threaten the corporate’s turnaround, however didn’t seem to foretell the heavy toll that the strikes would take.

Janaillac will formally resign at a Board of Directors’ assembly on May 9, the corporate mentioned, including that “it will be their responsibility to take the appropriate measures to ensure the continuity of the group and Air France during the transition period.”

The CEO of Air France, Franck Terner, will oversee the day-to-day operations of the corporate.

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