AIR FRANCE-KLM said its French arm has signed a deal with unions for wage increases this year and next, handing new CEO Ben Smith a big victory only weeks after he took office, reports Bloomberg.
The unions won a pay increase of two per cent retroactive to January 1 and another two per cent in 2019. The agreement follows a similar proposal rejected by employees earlier this year that led to the departure of Mr Smith's predecessor.
If the pay agreement sticks, it would put an end to an acrimonious labour dispute that has rocked investor confidence.
The airline says the five union groups that signed on represent 76 per cent of staff so it's considered 'valid'.
In agreeing to bring in a foreigner to run the carrier - Mr Smith is a Canadian - the government instructed the new CEO to 'repair' the airline.
Former Air Canada passenger chief Mr Smith, 47, had taken the lead of the Air France unit after Franck Terner resigned, putting him on the front line of negotiations with French unions.
The unions won a pay increase of two per cent retroactive to January 1 and another two per cent in 2019. The agreement follows a similar proposal rejected by employees earlier this year that led to the departure of Mr Smith's predecessor.
If the pay agreement sticks, it would put an end to an acrimonious labour dispute that has rocked investor confidence.
The airline says the five union groups that signed on represent 76 per cent of staff so it's considered 'valid'.
In agreeing to bring in a foreigner to run the carrier - Mr Smith is a Canadian - the government instructed the new CEO to 'repair' the airline.
Former Air Canada passenger chief Mr Smith, 47, had taken the lead of the Air France unit after Franck Terner resigned, putting him on the front line of negotiations with French unions.