French PM Backs Air France in Labor Dispute
October 07 2015 - 4:50AM
Dow Jones News
PARIS—The French Prime Minister Manuel Valls said the government
supports the management of Air France-KLM which is currently
embroiled in an acrimonious conflict with its workers over job
cuts.
"The state supports the management. Our representatives voted,
like all the board members, including the representatives of pilots
and workers, all the reform plan that was presented by the chairmen
of Air France-KLM and Air France," Mr. Valls said on French radio
station RTL.
He urged pilots to accept the cost-cutting plans they have
opposed so far.
The conflict between Air France management and workers soured on
Monday after the company unveiled a new cost-cutting plan after
weeks of negotiations with unions broke down after pilots refused
to fly more hours for the same pay. The new plan could lead to
2,900 job cuts, which may include forced departures if not enough
workers leave voluntarily.
At the end of a meeting between management and unions Monday, a
mob of workers grabbed two senior executives, tore their clothes
and sent a security guard to hospital. Footage of the incident
aired on TV and triggered a vocal debate in the country.
The clash highlights a painful reality for Europe's legacy
airlines. Air France is trying to slim its operations to compete
with low-cost carriers such as Ryanair Holdings PLC, while also
fending off Gulf carriers that have grabbed lucrative market share
for long-haul flights to Asia.
Write to Inti Landauro at inti.landauro@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 07, 2015 04:35 ET (08:35 GMT)
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