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Air France's New President Sets Deadline for Union Response on Cuts Plan

Strategic Insights

— 1 min read

Air France's newly appointed president, Christian Blanc, has put the ball in the unions' court with a deadline of Thursday to agree to a controversial rationalization plan aimed at saving the loss-making state-controlled airline. The plan, which includes 5,000 job cuts, longer working hours for ground staff and air crew, a three-year pay freeze, and a reduction in the carrier's fleet, is part of an effort to raise productivity by 30% over three years. The CGT union, however, has rejected the plan, citing concerns over the impact on staff.

Key Takeaways:

  • The rationalization plan proposed by Christian Blanc would result in 5,000 job cuts, a three-year pay freeze, and a reduction in the carrier's fleet from 166 to 149 aircraft.
  • Working hours for ground staff would rise by one hour per week to 39 hours, and freight crews would work 75 hours per month against the present 67 hours.
  • The plan aims to raise productivity by 30% over the next three years.
  • The French government has stated that it will only consider injecting new funds into the airline if the plan wins the support of staff.
  • The union, CGT, has rejected the plan and will consult its members over the next two days ahead of a final meeting with other unions on Thursday.

Statistics:

  • 5,000 jobs would be lost under the proposed rationalization plan.
  • The carrier's fleet would be reduced from 166 to 149 aircraft.
  • Working hours for ground staff would rise by one hour per week to 39 hours.
  • Freight crews would work 75 hours per month against the present 67 hours.
  • The plan aims to raise productivity by 30% over the next three years.
  • Air France has requested a capital injection of Fr20 billion (approximately USD 2.3 billion) from the state.

Sources:

  • "Air France's New President Sets Deadline for Union Response on Cuts Plan" (not available as the original text does not provide the exact source)
  • The airline has requested a Fr20 billion (pounds 2.3 billion) capital injection from the state.

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