AF staff vote down pay deal. Janaillac resigns. Benjamin Smith new CEO
I think that this topic might deserves a separate thread.distinct from the ongoing strike.
Air France-KLM boss quits as staff reject pay deal - BBC News In the nonbinding vote, the deal was rejected by 55% of voters with solid participation (80%). The CEO Jean-Marc Janaillac announced his resignation. All very sad. |
Sad indeed. As I said in the strike thread, Mr Janaillac made a similar mistake to the one Mrs Clinton made: he thought he would win because he is on the side of common sense. It seems that when people have been frustrated for many years, rightly or not, they think differently and fight back when they can.
I think it is an illustration of the fact that thinking cannot be just based on cold facts, perception is key and the balance of power should not be mis-understood. This will be interesting, although quite scary. |
Very sad indeed and for sure, severe turbulences ahead :(
It reminds me also the 1997 period when Christian Blanc resigned after unions refused his restructuring plan and was replaced by JC. Spinetta |
The whole idea of the referendum was an absolute joke for a start and those who thought or rather hoped that common sense would have prevailed amongst staff simply ignored the power that trade unions still hold in countries like France or Italy. Adding to misery, numbers for Q1 are not looking bright at all (especially if compared to the other direct competitors i.e. IAG/LHG) and things, at this rate, are very likely to take an even worse turn.
G |
Originally Posted by AlicorporateUK
(Post 29718106)
The whole idea of the referendum was an absolute joke for a start and those who thought or rather hoped that common sense would have prevailed amongst staff simply ignored the power that trade unions still hold in countries like France or Italy. Adding to misery, numbers for Q1 are not looking bright at all (especially if compared to the other direct competitors i.e. IAG/LHG) and things, at this rate, are very likely to take an even worse turn.
G I still cannot understand politicians who call for a referendum or early elections to get "popular" support. They should have learnt from history by now. A vote is just a cheap rant. |
The way it's been reported, some of the unions appear as arrogant and out of touch with reality. Also the way it's been reported, (some of) the management also appear as arrogant and out of touch with reality, and naive - unless they were planning exactly for this. Yes it takes some determination to get out of this situation by talking to each other. Maybe it's time to get started!
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Originally Posted by Goldorak
(Post 29718089)
Very sad indeed and for sure, severe turbulences ahead :(
It reminds me also the 1997 period when Christian Blanc resigned after unions refused his restructuring plan and was replaced by JC. Spinetta |
Originally Posted by brunos
(Post 29718193)
Indeed.
I still cannot understand politicians who call for a referendum or early elections to get "popular" support. They should have learnt from history by now. A vote is just a cheap rant. |
Looks like the political pressure is building up:
https://www.theguardian.com/business...-strike-action |
Originally Posted by Ardecos
(Post 29722383)
Looks like the political pressure is building up:
https://www.theguardian.com/business...-strike-action The French govt should sell all its remaining shares and let the AFKL group live (or die) on its own, and stop to interfere. |
It is still difficult for me to imagine, how the CEO came to make what appears as a mistake (two actually: asking for a vote, and threatening to resign). Either he could not care what happens in case a "no" wins. (He could not possibly have thought he would win with certainty. Not at that level). How could he convince his team, that this was a good idea. Or they let him "go" because they (AF management) did not like him.
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Only today the AFKL stock has lost 13% of its value.
Since its 52 week peak, it's down more than 50%. The company's market cap is EUR 3.1 BN. A bargain for anyone suicidal enough to buy a company with such a toxic workforce. |
Originally Posted by San Gottardo
(Post 29724583)
Only today the AFKL stock has lost 13% of its value.
Since its 52 week peak, it's down more than 50%. The company's market cap is EUR 3.1 BN. A bargain for anyone suicidal enough to buy a company with such a toxic workforce. Deutsche Lufthansa AG: EUR 11.64 BN IAG: EUR 14.11 BN Wizz Air: EUR 2.49 BN........................... |
Given the financial harm AF has already incurred, I can't see how they could offer anything more than what has already been offered to the employees. I'm not really taking sides here but I'm curious if the employees really think they can get a better deal than the one that was offered, as the airline continues to lose money. I think they might have missed out on their best chance.
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And Easyjet capitalization is over EUR 7 BN.
I would guess that the 3.1 BN of AFKL is all KLM, while AF component is near zero. But remember that AFKL stock price reached 5 by late 2016 and early 2017. A problem is that even if employees now accept the generous pay raise offered by AF, they would do so with bitterness and that would augur badly for tservice and the future of AF. |
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