Paris, France.- Air France-KLM CEO Jean-Marc Janaillac announced his decision to resign Friday as Air France crews and ground staff held their 13th day of strikes over pay and rejected the company’s wage proposal.
In an electronic vote Friday, Air France employees rejected management’s offer for a 2 percent pay rise this year and additional 5 percent raise from 2019 to 2021. A report showed that 55 percent of responders voted against the proposal.
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Unions want a 5.1 percent pay rise this year, arguing that their wages have been frozen since 2011 amid restructuring and noting that the company’s profits are up.
The company argued it must preserve its ability to stay competitive against low-cost airlines and bigspending Mideast and Asian carriers. “This is a huge waste that can only make our competitors rejoice,” Janaillac said of the failed vote.
Air France-KLM shares fell earlier Friday after the company announced the strikes had already cost the airline at least 300 million euros ($359,000). Air France- KLM also forecast a “notably” lower income this year compared to 2017.
Janaillac, who had been in the post since July 2016, met with the company board Thursday to discuss the quarterly results and the forecast.