Air France-KLM's new CEO seals elusive deal with French unions

Air France-KLM CEO 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 includes a wage increase of 2% retroactive to Jan. 1 and another 2% to take effect in 2019, according to a statement Friday. The agreement came after an acrimonious labour dispute that culminated in the resignation of former CEO Jean-Marc Janaillac after his wage proposal was rejected. Shares in the Paris-based carrier fell 3%, taking losses to 39% since the start of the year, as investors digested the costs of the salary increases. The standoff between management and unions, and 15 days of strikes earlier this year had rocked shareholder and customer confidence. The pay deal was signed by a majority of unions, which the airline said represented 76% of employees, but missing among the signatories was the pilots' union, SNPL. Negotiations between that group and management aren't over, SNPL spokesman Philippe Evain said Friday. <br/>