Air France labour unions plan to resume strike from June 23 to 26

Bloomberg

Air France labour unions called for a strike from June 23 to 26, reigniting a costly labour conflict at the height of the busy summer travel season.
Workers will strike unless an agreement is found to end the dispute in coming days, the unions said in an emailed statement after meeting
with management of parent Air France-KLM.
The decision by labour representatives to stage more walkouts lifts a pause in their action that had been in effect since last month when former Chief Executive Officer Jean-Marc Janaillac resigned over the conflict. Fifteen days of strikes that got underway on February 22 have cost the airline more than $473 million so far and helped lower passenger numbers at the Air France arm by 1.7 percent during May.
The 10 unions representing pilots, cabin crew and ground personnel are demanding a pay raise of at least 5 percent this year, as they seek a share of Air France-KLM’s 2017 profit increase. Management has so far refused, citing the need to continue investing, including by buying new planes. The former CEO proposed a 7 percent increase over four years tied to performance.
A majority of employees rejected the offer in May, triggering Janaillac’s departure and replacement with an interim team that doesn’t have a mandate to negotiate with unions or grant pay increases.
French Economy Minister Bruno Le Maire has said he expects a new CEO to be named by September.

Passenger numbers fall
Bloomberg

Air France flew fewer people in May after strikes hampered operations, leaving KLM to prop up business at parent company Air France-KLM as the threat of further labor action hangs over the struggling carrier.
Passenger numbers at the Air France brand, entangled in a pay conflict with workers, fell 1.7 percent last month compared to a
year earlier, the Paris-based company said.
At group level, they grew 1 percent, thanks to the Dutch arm. French unions have warned that the summer could be a “difficult” few months.