Air France CEO resigns after employees reject wage o
PARIS (AP) — Air FranceKLM preserve its ability to stay competitive After a protracted financial CEO Jean-Marc Janaillac against low-cost airlines and slump, Air France-KLM profits announced his decision to resign big-spending Mideast and Asian climbed last year as it expanded Friday as Air France crews and carriers. its global alliances and launched ground sta held their 13th day “This is a huge waste that can a new budget airline. The growth of strikes over pay and rejected the only make our competitors rejoice,” was helped by years of job cuts and company’s wage proposal. Janaillac said of the failed other restructuring e orts.
In an electronic vote Friday, Air vote. Janaillac warned last year that France employees rejected management’s Air France-KLM shares fell volatile fuel prices and geopolitical offer for a 2 percent earlier Friday after the company risks could threaten the company’s pay rise this year and additional 5 announced the strikes had already turnaround, but didn’t appear percent raise from 2019 to 2021. cost the airline at least 300 million to predict the heavy toll that the A report showed that 55 percent euros ($359,000). Air FranceKLM strikes would take. of responders voted against the also forecast a “notably” Janaillac will formally resign at proposal. lower income this year compared a Board of Directors’ meeting on
Unions want a 5.1 percent pay to 2017. May 9, the company said, adding rise this year, arguing that their Janaillac, who had been in the that “it will be their responsibility wages have been frozen since 2011 post since July 2016, met with the to take the appropriate measures amid restructuring and noting company board Thursday to discuss to ensure the continuity of the that the company’s profits are up. the quarterly results and the group and Air France during the The company argued it must forecast. transition period.”
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