Air France-KLM’s French pilots approve pay deal

Bloomberg

Air France-KLM Group’s French pilots approved a pay deal, putting an end to last year’s labour conflict and handing Chief Executive Officer Ben Smith more freedom to define his new strategy.
The accord, hammered out during months of talks between management and unions, was approved by 85 percent of pilots, the SNPL union said in a phone message. It grants pilots an average 4.3 percent pay increase, and the company has said it will improve flexibility.
Air France’s two pilot unions had given preliminary backing to the proposal last month, with the larger and more powerful SNPL union holding off on a final signature until pilots were consulted in a vote.
The wage increase comes on top of a 4 percent rise granted to all employees last year. Securing peace with unions was at the top of Smith’s to-do list when he took over in September.
Smith’s predecessor resigned after previous talks on pay led to rotating strikes and a companywide employee vote that pushed him out the door. The deal was opposed by some, including Gregoire Aplincourt, the president of Air France’s SPAF pilot union, who said it chipped away at guarantees including that business won’t move from Air France to KLM. Smith’s next challenge is to close the profitability gap between Air France and sister carrier KLM. To do that, the Canadian CEO will need to pare costs and boost sales.