Air France offers ‘growth pact’ pay proposal in bid to end strikes

Air France has presented a new “growth pact” pay proposal to unions in a bid to put an end to a series of strikes that has led to flight cancellations and disruption.

Air France offered a deal that included salary increases for 2018, 2019, 2020 and 2021, which it said would lead to an average increase of 12.5% over the period. In addition, the airline said it would include a general increase of 7% for all categories of staff, as well as individual increases and sliding seniority and skills pay scales.

It said an additional pay increase of 1% offered for 2018 would bring the total increase to 2% as of April 1, 2018, while it offered a general wage increase of 5% for 2019, 2020 and 2021—1.65% per year.

However, the growth pact includes plans to adapt the increase if Air France’s financial result is less than €200 million ($247 million) and to apply a reversion clause in case of higher inflation or a negative financial result, the airline said.

“The continuing strike action is having serious consequences for the company, its customers and staff. It is financially destructive for the airline and its staff, and is putting the company’s future in danger. The estimated cost of these strikes, including 17 and 18 April, is €220 million ($272 million),” Air France added.

Unions can sign the deal up to midday on April 20, but it is unlikely they will be satisfied with the proposal—they have previously called for a 6% pay increase, citing years of decreasing pay in real terms while the Air France-KLM Group’s profits rise.

The Force Ouvrière (FO) described the proposal as a “wage moderation agreement in disguise for 2019, 2020 and 2021, which is completely disconnected from the multiple rises in inflation that took place between 2012 and 2018.”

The French carrier said it planned to operate 70% of its flights on April 18, when another strike is planned, including 705 of long-haul, 55% of medium-haul and 80% of short-haul services.

That forecast considers an estimated 31.1% of pilots, 22.4% of cabin crew and 13.8% of ground staff taking part in the strike.

Strikes are also planned for April 23 and 24.

Source: atwonline