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Air France Warns Of Layoffs Over No Vote From Pilots Union

October 2, 2015 - On Wednesday Air France failed to reach a new agreement with its pilots union over benefits and pay cuts in its "Perform 2020" plan. As a result, the airline has warned that the company will look at its "Plan B" option which is to cut up to 2,900 jobs.

Air France, a subsidiary of the Air France-KLM Group had indicated it was seeking cuts of $190 million annually over the next three years. But since its pilots union has voted no to stripping down its pilots benefits and pay and its members having to work more hours for less money the French air carrier will entertain cutting its personnel.


In a press release, Air France-KLM said its Board of Directors had met on Thursday to assess the implementation of the Perform 2020 plan within the Group, that KLM Management signed an agreement in September to increase productivity with all its staff. This agreement was immediately put into effect.

The release further stated "The Board has noted the absence of an agreement on 30 September 2015 in the negotiations between Air France Management and flight crew unions, in spite of on-going dialogue over the past several months and numerous proposals put forward by Air France Management.

"Facing the impossibility of reaching an agreement to implement the productivity measures within Air France in order to restore long-term profitability, the Board members consider it essential to introduce an alternative plan and have unanimously agreed to mandate Air France-KLM and Air France Management to carry this out.



"This plan includes a reduction in Air France’s activity in 2016 and 2017 in order to guarantee the Company’s future and its economic objectives. It will be presented to the Air France Central Works Council on Monday 5 October. As noted by the Board of Directors, which has expressed its unanimous support, we must move forward today to ensure a sustainable future for the Group's activities allowing it to capture the growth of the sector by relying on its most competitive activities. We are reaffirming our determination to make Air France-KLM one of the leaders in the consolidation of our industry on a global level”, declared Alexandre de Juniac, Chairman and CEO of Air France-KLM.

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