Air France update on the voluntary redundancy plan

30th Jul 2012
Air France update on the voluntary redundancy plan

In line with the initial schedule, the Air France Central Works Council was informed of the Human Resources and Skills Planning (GPEC) and the proposed voluntary redundancy plan for ground staff.

This voluntary redundancy plan consolidates the Company’s commitment to exclude the use of forced departures in exchange for a 20% improvement in economic efficiency.

Ground staff: a voluntary redundancy plan affecting a maximum of 2,767 people in full-time equivalent contracts

The foreseeable changes in ground staff numbers for the years 2012 and 2013 is characterised by an overall decrease in the need for requirements.

The Company has chosen to offer voluntary departure schemes with accompanying measures for professional and personal projects and incentives for voluntary retirement.


Following the signature of the Ground staff agreement by a majority of representative unions contributing to a 20% increase in economic efficiency by 2014, the Central Works Council has been informed of the proposed voluntary redundancy plan.

Based on the excess staff figures given at the horizon of December 2013, the departures that have already taken place in 2012 and the forecast natural departures (retirement, resignations, etc.), the voluntary redundancy plan will concern a maximum of 2,767 ground staff (full-time equivalent).

This plan concerns present and paid staff throughout the plan’s duration, employed on an open contract with Air France in Metropolitan France and the French Overseas Departments. It is not accessible to executive staff with less than 8 years’ seniority at 31 December 2013, nor to staff born before 1 January 1949 who could qualify for retirement, as well as some people with special expertise.

The Voluntary Redundancy Plan will be submitted for consultation by the Central Works Council on 19 September. The accompanying measures will then be explained in detail and communicated during a staff information campaign which will begin on 1 October 2012. Taking into account the legal constraints, the first departures will not begin before end-November 2012 and will continue until end-September 2013.

Expected accompanying measures

- For staff eligible for a full retirement in 2012 and 2013:
*  Payment of a retirement indemnity
*  An incentive for voluntary retirement
*  Payment of a supplementary retirement indemnity for people needing semesters or points to qualify for retirement
*  Assistance/advice from specialised consultants

- For other staff:
*  Redundancy payment according to scales defined in the collective agreements
*  An incentive for voluntary departure for a professional or personal project (a supplement of 6 months of the redundancy package – within a maximum of 24 months)
*  Proposal of a reclassification leave
*  Rapid reclassification indemnity as part of the reclassification leave
*  Assistance/advice from specialised consultants

Other measures such as aid for the takeover or creation of a company, geographical mobility in case of external reclassification are also possibilities. Complementary measures should also be accessible, such as a special leave without pay or incentives to temporarily switch to part-time.

This voluntary redundancy plan for ground staff is calibrated in line with the different increased productivity and optimised organisation projects carried out in the different entities within the framework of Transform 2015.

Flight attendants: towards a unilateral definition of measures allowing to reach the targeted 20% improvement in economic efficiency

The proposed agreement for commercial cabin crew open for signature on 9 July has been submitted to referendums by the 3 representative organisations (UNAC, SNPNC, UNSA).

This agreement received a favourable view from the majority of UNAC members, the leading commercial cabin crew union (representing 26% of employees). It was however rejected by SNPNC and UNSA. The proposed agreement will therefore not be signed, the minimum level required for validation being 30%.

As planned, Air France is therefore resuming the procedure of revocation, suspended during the negotiation process, of the commercial cabin crew collective agreements and is preparing unilateral measures which will allow it to reach the 20% increase in economic efficiency.

The compensatory measures set out in the initial agreement, notably in terms of employment and purchasing power until end-December 2014, will no longer be guaranteed.

Pilots: a favourable view from the SNPL and a referendum underway

The proposed agreement for pilots was opened for signature on 9 July after receiving a favourable view from the SNPL union advisory body on 5 July. The latter union represents over 70% of the Company’s pilots. It has currently been submitted to a referendum by SNPL members and the results will be known by mid-August.

Air France Management applauds the commitment and sense of responsibility of Company staff and their representatives who, aware of the urgency of the situation, support in their majority the Company’s recovery plan.

Transform 2015 will be implemented at the start of September, in line with the initial schedule.


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