Employees Rejected A 7 Percent Pay Increase Over 4 Years

Air France KLM CEO Jean-Marc Janaillac says he will resign from the post following a vote by Air France employees rejecting a 7 percent pay increase over 4 years.

Air France employees have been on strike for 14 days, according to a report from Reuters as relayed by Buying Business Travel, and has lost some $356 million as a result. In an effort to end the labor action, Janaillac decided to let the staff vote on the pay increase offer after being unable to negotiate an agreement with unions at the carrier. The result was 55.44 percent of the employees voting to reject the offer out of the 80.33 percent of employees who voted.

With that rejection, the airline says the offer is off the table. Janaillac will offer his resignation at a special meeting of the Air France KLM board Wednesday. it is expected that Air France CEO Franck Terner will be named to oversee daily operations of Air France KLM following Janaillac's departure.

The French Government, which is the largest stakeholder in Air France, has said it will not offer a bailout to the airline group if it finds itself in financial trouble due to the strike. French unions say that Air France is not negotiating seriously.

(Image from file)

FMI: Original report