The French government and Air France may be ready for the flag carrier's partial privatisation, but its employees certainly are not, and some are gearing up for strike action.
The French government has announced that up to 20 per cent of Air France is to be floated on the Paris stock exchange, while up to 15 per cent will be earmarked for Air France employees. In addition, 10 per cent of the company's capital is to be offered to pilots in exchange for 15 per cent pay cuts. The share offering is set to start in June or September.
But Air France's belief that the offering will lay 'the foundations for a new era of labour relations' seems sadly mistaken. Instead, the plans have inflamed traditionally rocky management-union relations.
'It's inevitable that pilots are going to go on strike,' says Réné Philippeau of Air France's chief pilots union, SNPL. Negotiations over pay cuts were due to start at the end of March. But Philippeau says unions are already up in arms over management's alleged declaration that 'those who don't want to accept the pay cuts will be made redundant'.
Redundancy is also a bitter fear for the CGT, Air France's main union. 'You've just got to look at all the redundancies at privatised airlines such as British Airways. And besides Air France has proved its worth without being privatised,' says CGT secretary general Eric Jibert. The Air France Group recorded a turnover of FFr46.2 billion (US$7.6 billion) for April to December 1997, up 8.9 per cent on the previous year.
Speculation that its partner Continental Airlines is interested in a stake in Air France was fuelled by a meeting between the presidents of both airlines in early March.
Source: Airline Business
