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Air Canada VP Ben Smith hired for the Air France - KLM CEO position

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Air Canada VP Ben Smith hired for the Air France - KLM CEO position

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Old Aug 21, 2018, 7:22 pm
  #181  
 
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Some labour troubles at KLM.

http://atwonline.com/labor/klm-rejec...ow-take-action

KLM Royal Dutch Airlines and its pilots have hit an impasse in their collective-labor agreement (CLA) talks, after carrier failed to agree to pilot demands by an Aug. 17 deadline.

The previous CLA expired in January 2018 and, while the backbone of a new deal was agreed to in May, a sticking point remains over work pressure and work-life balance.
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Old Aug 21, 2018, 8:47 pm
  #182  
 
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Originally Posted by tracon
Some labour troubles at KLM.
The previous CLA expired in January 2018 and, while the backbone of a new deal was agreed to in May, a sticking point remains over work pressure and work-life balance.
Huh?! How can work-life balance and work pressure be a point in labour negotiation. That's a career choice made by employees not a condition set by employers. I could understand an unreasonable work environment (i.e. overly hot/humid, only getting 4 hours of sleep, etc.). This really takes the cake and illustrates the French labour mentality!

-James
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Old Aug 21, 2018, 8:53 pm
  #183  
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Originally Posted by j2simpso
Huh?! How can work-life balance and work pressure be a point in labour negotiation. That's a career choice made by employees not a condition set by employers. I could understand an unreasonable work environment (i.e. overly hot/humid, only getting 4 hours of sleep, etc.). This really takes the cake and illustrates the French labour mentality!
KLM is Dutch, not French.
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Old Aug 21, 2018, 8:54 pm
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Originally Posted by j2simpso
Huh?! How can work-life balance and work pressure be a point in labour negotiation. That's a career choice made by employees not a condition set by employers. I could understand an unreasonable work environment (i.e. overly hot/humid, only getting 4 hours of sleep, etc.). This really takes the cake and illustrates the European labour mentality!

-James
Fixed
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Old Aug 21, 2018, 9:04 pm
  #185  
 
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Originally Posted by j2simpso
Huh?! How can work-life balance and work pressure be a point in labour negotiation. That's a career choice made by employees not a condition set by employers. I could understand an unreasonable work environment (i.e. overly hot/humid, only getting 4 hours of sleep, etc.)
Work-life balance and work pressure are in most labour negotiations.
It's not always worded as such.
I believe it's one of the key issues in the WS negotations.

It's basically a fancy term for how pairings are set up.
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Old Aug 21, 2018, 10:18 pm
  #186  
 
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Originally Posted by j2simpso
Huh?! How can work-life balance and work pressure be a point in labour negotiation.
Work-life balance was the only issue in the strike at Canadian Pacific this spring.
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Old Aug 21, 2018, 10:56 pm
  #187  
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Originally Posted by j2simpso
Huh?! How can work-life balance and work pressure be a point in labour negotiation. That's a career choice made by employees not a condition set by employers. I could understand an unreasonable work environment (i.e. overly hot/humid, only getting 4 hours of sleep, etc.). This really takes the cake and illustrates the French labour mentality!

-James
Once again @j2simpso you post based on North American bias about how other cultures should behave - Mr. Smith will make an enormous error in following such a perspective.

And since I am both a citizen of Canada and Italy, carrying an EU passport in addition to a Canadian one, routinely experience EU culture both on a professional and personal basis. Also, of late have the great fortune to work in France with two major aviation operators, for whom AF is a major supply chain partner. I will learn soon enough if AF begins to change its ways, until then you may wish to examine the Western EU GDP/labour employed in comparison - when adjusted for the long vacations normal in EU, then Western EU productivity rates are about the same as NA. and most productivity comparisons fail to address that many EU citizens work far less so work-life balance is NOT a trivial matter as many get at least 6 weeks of annual leave - and senior folks I deal with often get 8-10 weeks.

Mr. Smith may not be able to take such long vacations given his new responsibilities, yet, one of the challenges that Mr. Smith will face is NOT just the union staff that demand work-life balance, but most of his senior managers will also demand their right to NOT work.
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Old Aug 21, 2018, 11:05 pm
  #188  
 
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Originally Posted by tracon
Work-life balance and work pressure are in most labour negotiations.
It's not always worded as such.
I believe it's one of the key issues in the WS negotations.

It's basically a fancy term for how pairings are set up.
I can see this being a major issue for all the labour groups other than the pilots.

The pilots work is also governed by a significant amount of human factors engineering constraints to avoid fatigue and reduced human performance. This probably is some limited aspects of work-life balance to negotiate in collective bargaining but is not most of it dictated by regulation already?
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Old Aug 24, 2018, 7:04 pm
  #189  
 
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http://atwonline.com/labor/air-franc...ew-ceo-arrival

Air France unions will meet to discuss the next steps they will take to continue their fight for bigger pay increases as the Air France-KLM group prepares for the arrival of new CEO Benjamin Smith by the end of September.
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Old Aug 24, 2018, 10:32 pm
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Bloomberg BusinessWeek run a really good feature story here:
Certainly a quite challenging situation over there involving all these political players
https://www.bloomberg.com/news/featu...ng-less-french

While travelers gorge on competitors’ cheap fares, an airline known for supersonic flights and Dior uniforms is plagued by strikes and regulations. Can a new Canadian CEO restore the brand to its former glory?
But as the hunt for a new leader wore on, Macron’s government proved flexible on both points. That opened the door for Air Canada’s Smith, who will receive annual pay of up to €4.25 million, and whose appointment was enthusiastically endorsed by Finance Minister Bruno Le Maire even before it had been officially announced. Smith will take over by the end of September.

The threatening Canadian is a rare C-suite species, but unions aren’t exactly throwing a welcome party for the new CEO. Although Smith is a French speaker who rose from running a travel agency to become COO of Canada’s largest airline, labor groups immediately condemned him for having the wrong passport. In a statement issued the morning he was appointed, a group of nine unions declared it “inconceivablethat Air France, a French company since 1933, would fall into the hands of a foreign executive” at a time of rising protectionism elsewhere. Unsurprisingly, they also took issue with Smith’s salary. Sweetening a CEO’s compensation while demanding concessions from workers tends to go down in France like a stale baguette.

Despite the government’s eagerness to reform Air France, Smith—who negotiated Air Canada’s most recent labor deals, striking unprecedented 10-year agreements with both pilots and cabin crew—can’t be assured of Macron’s backing in a confrontation with workers. The administration has so far taken a hard line, blocking a recent compromise pay deal in the hopes of applying what the anonymous official termed an “electric shock” to Air France, and dispatching Le Maire to warn the public that the airline could “disappear” if it doesn’t become more competitive. But French leaders have a long history of backing down on painful reforms when protests threaten to exhaust their political capital. The picture might be only somewhat better for Smith in the Netherlands, where KLM pilots are considering a strike to reduce their workload.

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Old Aug 25, 2018, 12:45 pm
  #191  
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WOW! that's a pay package! LOL and if Ben only lasts 2 years, its a sweet exit plan.

That opened the door for Air Canada’s Smith, who will receive annual pay of up to €4.25 million
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Old Aug 25, 2018, 12:54 pm
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Originally Posted by mellon
WOW! that's a pay package! LOL and if Ben only lasts 2 years, its a sweet exit plan.

That opened the door for Air Canada’s Smith, who will receive annual pay of up to €4.25 million
How is he gonna expect the pilots to play ball when he himself got a nice pay rise
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Old Aug 25, 2018, 1:29 pm
  #193  
 
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His compensation is fair given the amount of crap he is expected to take on.
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Old Aug 25, 2018, 3:27 pm
  #194  
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Originally Posted by Jumper Jack
How is he gonna expect the pilots to play ball when he himself got a nice pay rise
He's far more important than lowly pilots.
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Old Aug 25, 2018, 7:40 pm
  #195  
 
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Originally Posted by mellon
WOW! that's a pay package! LOL and if Ben only lasts 2 years, its a sweet exit plan.

That opened the door for Air Canada’s Smith, who will receive annual pay of up to €4.25 million
Willie Walsh, head of IAG (BA, Iberia) has compensation of €7.9 million (salary + stock), so to head an airline group the size of AF and KLM it actually seems small in comparison. Granted IAG has double the profit of AF/KLM on similar revenues. Ben has lots of challenges ahead of him.
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