France warns carrier against forced job cuts after state bailout

France is warning Air France-KLM against making forced job cuts, with Finance Minister Bruno Le Maire saying such a move would constitute a “red line” the carrier shouldn’t cross after receiving a state bailout. “We spent money to save Air France,” he said Thursday. “I am asking that there not be any forced departures -- that’s the red line.” Le Maire declined to confirm a report Wednesday that the airline is seeking about 8,300 voluntary staff departures at its French arm, including pilots, cabin crew and ground staff. “I hope it’s less than 8,000 jobs,” he said. “The state will back a company that becomes profitable and is solid.” Europe’s second-biggest airline is preparing to unveil a workforce plan in coming weeks as part of a strategic review ordered by CEO Ben Smith. Any cuts will add to thousands of jobs on the line in the sector in Europe. The French unit, which employs 46,000 people, agreed to a 40% cut in domestic capacity by the end of next year and a lowering of carbon emissions. The cuts could include around 300 pilots, 2,000 cabin crew and 6,000 ground staff, or roughly 17% of employees, according to people familiar with the matter. Le Maire’s comments show that Smith is under pressure to avoid enforced dismissals, a move the CEO has already said he doesn’t want to make.<br/>
Bloomberg
https://www.bloomberg.com/news/articles/2020-06-18/france-warns-carrier-against-forced-job-cuts-after-state-bailout?sref=e2RvHR3i
6/18/20