Dutch eye Air France woes fearing headwinds for KLM
Dutch politicians and unions are watching the unfolding crisis at Air France with increasing concern, amid fears the turbulence at the French company will sideswipe its Dutch partner KLM — another chapter in an already stormy union. Air France-klm boss Jean-marc Janaillac abruptly announced his resignation on Friday after staff at the French carrier rejected a pay deal, which had been aimed at ending months of costly walkouts.
Staff and unions at KLM, which merged with the French company in 2004 to create Europe’s biggest airline, have however been left helplessly on the sidelines, angered by the drama across the border.
Once again, the crisis has helped to highlight sharp cultural and social differences between the two countries, with Dutch workers rarely resorting to bitter conflicts with employers.
“Asking for a raise from the top of the barricade and waving a flag is absurd,” said Robert Swankhuizen, head of the Dutch Association of Aviation Technicians (NVLT).
In line with the Dutch approach to labour relations, he backs “compromise” and said he believes “things can always be resolved by discussing them calmly”.
He qualified Janaillac’s departure as “stupid” in the eyes of KLM staff, adding under his stewardship the company “has prospered. He will be missed by the group. He was always very open”.
Air France shares went into a tailspin on the Paris stock exchange on Monday, closing 9.8 per cent lower on the day. They lost another 0.7 per cent on Tuesday.
The chaos at Air France is a bitter pill for KLM, which has seen its own profits drained by its French partner.
The group announced first quarter losses of 118 million euros, but that was entirely due to Air France which lost 178 million euros compared to KLM’S profits of 60 million euros. Added to that, staff and management at Air France have been locked in the pay dispute since February — at a cost of another 75 million euros.
The French government has steadfastly ruled out coming to the aid of the country’s flagship carrier, but Transport Minister Elisabeth Borne did discuss the situation late on Monday with her worried Dutch counterpart, Dutch media reported.
French unions are demanding a 5.1 per cent wage increase in 2018, after a six-year salary freeze.
The offer rejected by 55.44 per cent of Air France workers was for a 7.0 per cent pay rise, but spread over four years.
“These demands are irresponsible. The unions have to shoulder their responsibilities,” insisted Swankhuizen, adding the “strikes are weakening” the company’s position.
“Gulf companies are just waiting to jump in and grab parts of the European market,” he said, “so how far are we going to let the situation go?” “We’ve been taken hostage, and have become the fall guys,” he added.