France -Air France to cut 5000 jobs -June 21, 2012

In reaction to more losses for the already indebted air carrier group Air France - KLM, Air France has announced it aims to cut 5000 jobs by the end of 2013. The cuts will affect nearly 10% of Air France employees, yet the company has sent a plan to unions to reach the number without resorting to involuntary redundancies. About 1500 jobs are expected to disappear due to natural turnover; the rest will come from early retirements, reduced working hours and voluntary departures. Unions have reacted positively to the airlines commitment to social talks but are sceptical about the chances of cutting 5000 jobs without involuntary redundancies. Air France has warned unions that if they do not sign on to the plan, layoffs will be inevitable.

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