Wednesday is a bad day for Air France. Its shares lost more than 10.51% to €1.26. Decline as a result of a combination of phenomena. First, Air France-KLM announced the issue of bonds convertible into shares: 300 mln. Those funds will be directed to the repayment of the state loan given by France. Even if it is financially sound, it exposes existing shareholders to risk in the event of a conversion to equity. An opportunity that always drives the stock market down.
Then on Tuesday, the threat of an escalation of the conflict in Ukraine after strikes in Poland prompted investors to be wary of the airline’s shares. But above all, it is the Christmas strike notice launched by Air France’s two majority stewards and flight attendants unions (SNGAF and Unac) that has spooked analysts. If they carry out their threat, traffic may be disrupted from December 22 to January 2.
“This notice should serve as a warning to our management.”, according to a leaflet distributed by the two unions on Tuesday. The subject of the conflict between the management and some employees is related to the revision of the collective agreement concluded at the end of October, which regulates the professional life of pilots and flight attendants (working conditions, pay, promotion, etc.). On this occasion, the management wants to improve the productivity of its staff. In particular, he would like flight attendants to take care of 50 passengers during long-haul flights, compared to 48 today. A development that the trade unions are against. Discussions on this topic had already stopped in 2021. Dozens of meetings held since September also failed to find a compromise.
Resumption of negotiations
However, the leadership does not despair of signing a new agreement in the coming months. Seven new negotiation meetings are planned until January. But at the same time, in a simple management note, he extended the terms of the old contract, which on paper can be changed at any time, the unions say. A way of doing things that has the art of pissing off SNGAF and Unac Air France. “ With this forced transition, management can change our working conditions overnight.says SNGAF Communications Manager Gabriel Pons. We want him to extend the old agreement during the negotiations, which may last until the end of March, which will give us acceptable guarantees. » Under this condition, the unions will withdraw the strike notice.
For its part, Air France does not understand this danger of social conflict, which it did not see. From there, there is only one step left to think that certain associations are preferred in the perspective of the professional elections to be held in February. “ The company is interested in this notice as new negotiations are underway with representative unions to extend the PNC agreement from the end of September and are due to continue beyond January 2023. »responds the carrier who wants to specify. “Air France management has already committed during the negotiation phase to ensure that all provisions governing the lives of crew members remain unchanged. »
This strike threat is no joke. First, it damages the image of Air France. the company, which has not experienced a major social conflict since 2018, is again in the public eye in the camp of companies undermined by “farming”. Besides, Christmas is a very busy period. Even if Air France has already sold most of its tickets for this ten-day period, those that have yet to be confiscated are the most expensive because of the policy. yield management. However, the threat of a strike risks alienating the company’s customers, who will suddenly turn to its competitors.
Source: Le Figaro
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.