Air France Collective Bargaining Proposal

The privatization of Air France, the principle of which has just been reaffirmed by the Government, will result in the replacement of the current staff status by collective bargaining agreements by the end of the two-year period provided by the draft law, currently being examined by Parliament. To prepare for the negotiations, which will follow the Company`s privatization, the Air France Management has just proposed a framework agreement for signature by all the unions.
This agreement aims at:

á maintaining the social benefits of each Company employee,
á defining the principles and timeframe for the preparation of the future collective bargaining agreements.
This agreement, based on objectives and methods in accordance with the wishes expressed by Chairman Jean-Cyril Spinetta at the Works Council meeting on 12 September 2002, reflects the determination of the signing parties to devote the necessary time and resources to ensure the success of the future collective bargaining agreements, with wide-scale consultation.

The first part of the agreement concerns guarantees given to the employees in four areas:

á Job guarantee, stipulated in the ground staff and cabin crew collective agreements.
á Guarantee to maintain the staff`s current social benefits, working conditions and remuneration.
á Guarantee to provide favourable measures to give employees access to the Company`s capital.
á Reciprocal commitment to contribute constructively to the preparation of the future collective bargaining agreements.
The second part of the agreement defines the methodology:
á Timeframe: the accompanying legislation stipulates a maximum time limit of two years from the date of privatization to sign the collective bargaining agreements. The framework agreement provides for a mid-way progress report, to review the work achieved after one year.
á Organization: all unions are invited to take part in the preparation of the collective bargaining agreements. Project groups will be formed and specialized correspondents appointed in the unions, and a joint management/union committee will be set up.

The agreement proposed for the signature of unions gives a precise but flexible framework for the preparation of the future collective bargaining agreements. Its aim is to enable the Company to take full advantage of the maximum two-year period to negotiate the transposing of the current staff status with regard to remuneration, employment and working conditions in a climate of wide-scale consultation and trust.