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Air France-KLM's New CEO Seals Elusive Deal With French Unions

  • Accord designed to end labor dispute at airline’s French arm
  • Pay deal is an early victory for CEO Smith weeks into his job
Air France Operations At Charles de Gaulle Airport Ahead Of Air France-KLM Group Earnings
Photographer: Christophe Morin/Bloomberg
Updated on

Air France-KLM Chief Executive Officer Ben Smith marked an early victory just weeks after taking the top job by reaching a pay deal with French unions that had eluded his predecessor.

The accord at the Air France arm includes a wage increase of 2 percent retroactive Jan. 1 and another 2 percent to take effect in 2019, according to a statement Friday. The agreement came after an acrimonious labor dispute that culminated in the resignation of former CEO Jean-Marc Janaillac after his wage proposal was rejected.