Type
Internal restructuring
Country
France
Region
Location of affected unit(s)
Sector
Transportation / Storage
Land, Water And Air Transportation
Air Transport
51.10 - Passenger air transport

1,000 - 2,900 jobs
Number of planned job losses
Job loss
Announcement Date
5 October 2015
Employment effect (start)
1 January 2016
Foreseen end date
31 December 2017

Description

On 5 October, after the failure of negotiations with pilots over working time-related productivity increases  (so-called “plan A”), the management of Air France announced to its Central works councils a restructuring plan that will consist of a reduction of about 10% of the current air routes and a reduction of 14 aircraft (“plan B”) that will lead to the loss of 2,900 jobs (300 pilots, 900 cabin crew and 1700 ground employees).

Employees who demonstrated outside the building where the meeting was held sought entry to the meeting and some of them accosted two member of management as well as security guards. Pictures and videos of the incident went "viral" on the Internet (eg, see France 24). The management subsequently sanctioned 16 employees, dismissing four. On 13 November, each of the unions involved asked for their restitution and refused any dismissals.

The process of information and consultation is still pending to reduce the number of job reductions, but according to management, a reduction of  at least 1,000 positions by 2016 is unavoidable. Negotiations are ongoing regarding the remaining 1,900 positions. According to management, to avoid job cuts, employees will have to work 100 hours more per year for the same salary. It has also indicated that it will propose a voluntary departure plan and expects to avoid compulsory dismissals. 

A central works council was held on 19 November, where the employees’ representatives voted for a report evaluating the different restructuring scenarios – the plans “A” and “B”. The report will be forwarded to Air Frances’ board in January 2016.  


Sources

  • 5 October 2015: Le Figaro
  • 22 October 2015: Le Figaro

Citation

Eurofound (2015), Air France, Internal restructuring in France, factsheet number 85495, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/85495.