New Air France-KLM boss meets minister ahead of strike decision

Newly appointed Air France-KLM CE Ben Smith held talks with French Transport Minister Elisabeth Borne, a government spokesman said Wednesday, as the airline group’s unions prepare to decide on further strike action over pay. The minister met Smith Tuesday for a “a first discussion of the main issues” facing the group, the spokesman said. The former Air Canada executive was named last week as Air France’s first non-French CEO, three months after his predecessor quit amid crippling wage strikes. Smith’s own pay may further inflame tensions as he faces the challenge of striking new Air France union agreements on pay and productivity. His new compensation package amounts to a maximum E3.25m in fixed and variable pay, with an additional E1m awarded if specific turnaround goals are met, Air France-KLM said in a notice on its website, confirming earlier French press reports. Smith, 46, is due to take up the top job in late September. Unions that had backed earlier strikes will meet Monday to decide whether to pursue further action, amid some signs that workers’ representatives have softened their stance and may opt for a more conciliatory start to relations with their new CEO.<br/>