Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Air France unions braced for job cut talks

Published 07/03/2020, 03:21 AM
Updated 07/03/2020, 03:25 AM
© Reuters. FILE PHOTO: Air France Airbus A380 retirement flight near Paris

PARIS (Reuters) - The French government on Friday called on Air France to avoid mandatory layoffs as the airline prepared to announce some 7,500 job cuts to cope with a collapse in travel due to the coronavirus pandemic.

Managers at the airline, part of Air France-KLM (PA:AIRF) Group, are due to meet labour unions in Paris on Friday to detail the redundancy plans affecting some 15% of all employees, including pilots, stewards and ground staff.

At least half of the cuts will likely entail voluntary departures and retirement plans, sources familiar with the matter said this week, while 1,000 jobs are likely to be cut at Air France's "HOP!" airline.

But the prospect of possible compulsory layoffs has raised alarm among workers and the French state, which has granted Air France 7 billion euros ($7.87 billion) in aid to help it survive the pandemic.

"A successful labour reorganisation is one where there are no forced departures," junior economy minister Agnes Pannier-Runacher told Sud Radio on Friday.

Pannier-Runacher said the government's aid package for the airline, which included state-backed loans, was justified as the carrier was "on the edge", but called on Air France managers to pursue cutbacks responsibly.

Aircraft maker Airbus' (PA:AIR) plans to cut some 15,000 jobs across Europe - with a third of those in France - sparked similar warnings this week, as a wave of restructuring triggered by the virus outbreak begins to hit.

© Reuters. FILE PHOTO: Air France Airbus A380 retirement flight near Paris

Under CEO Ben Smith, who joined from Air Canada in 2018, Air France-KLM has sought to cut costs, improve French labour relations and overcome governance squabbles between France and the Netherlands, each owners of close to 14% of the group.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.