PARIS: The French government on Friday called on Air France to avoid mandatory layoffs as the airline prepared to announce some 7,500 job cuts to cope with a collapse in travel due to the coronavirus pandemic.
Managers at the airline, part of Air France-KLM Group, are due to meet labor unions in Paris on Friday to detail the redundancy plans affecting some 15 percent of all employees, including pilots, stewards and ground staff.
At least half of the cuts will likely entail voluntary departures and retirement plans, sources familiar with the matter said this week, while 1,000 jobs are likely to be cut at Air France’s “HOP!” airline.
But the prospect of possible compulsory layoffs has raised alarm among workers and the French state, which has granted Air France $7.87 billion in aid to help it survive the pandemic.
“A successful labor reorganization is one where there are no forced departures,” junior economy minister Agnes Pannier-Runacher told Sud Radio on Friday.
Pannier-Runacher said the government’s aid package for the airline, which included state-backed loans, was justified as the carrier was “on the edge,” but called on Air France managers to pursue cutbacks responsibly.
Aircraft maker Airbus’ plans to cut some 15,000 jobs across Europe — with a third of those in France — sparked similar warnings this week, as a wave of restructuring triggered by the virus outbreak begins to hit.
Under CEO Ben Smith, who joined from Air Canada in 2018, Air France-KLM has sought to cut costs, improve French labor relations and overcome governance squabbles between France and the Netherlands, each owners of close to 14 percent of the group.
Air France unions braced for job cut talks
https://arab.news/823ea
Air France unions braced for job cut talks
- At least half of the cuts will likely entail voluntary departures and retirement plans
Closing Bell: Saudi main index closes in green at 10,917
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 4.86 points, or 0.04 percent, to close at 10,917.04.
The total trading turnover of the benchmark index was SR3.95 billion ($1.05 billion), as 102 of the listed stocks advanced, while 147 retreated.
The MSCI Tadawul Index increased, up 0.54 points, or 0.04 percent, to close at 1,467.06.
The Kingdom’s parallel market Nomu lost 85.41 points, or 0.36 percent, to close at 23,357.50. This comes as 19 of the listed stocks advanced, while 46 retreated.
The best-performing stock was Tourism Enterprise Co., with its share price surging by 10 percent to SR13.53.
Other top performers included Al Yamamah Steel Industries Co., which saw its share price rise by 8.64 percent to SR39.22, and Anaam International Holding Group, which saw a 4.05 percent increase to SR12.59.
Alramz Real Estate Co. saw its share price rising by 3.95 percent to close at SR61.85, while Umm Al Qura for Development and Construction Co. closed at SR18.08, marking a 3.67 percent increase in share price.
On the downside, the worst performer of the day was Saudi Industrial Export Co., whose share price fell by 3.72 percent to SR2.59.
ACWA Power Co. saw its share price fall 3.54 percent to SR177.20, while Naseej International Trading Co. declined 3.08 percent to SR29.56.
Moreover, the share price of Rabigh Refining and Petrochemical Co. dropped 2.95 percent to close at SR6.57, while Nice One Beauty Digital Marketing Co. saw its share price dropping 2.65 percent to SR17.97.
On the announcement front, Alinma Capital has declared a cash dividend distribution totaling SR6.55 million for unitholders of the Alinma Saudi Government Sukuk ETF Fund.
The dividend, covering the period from July to December, amounts to SR0.162 per unit and represents approximately 1.56 percent of the fund’s net asset value as of Jan. 15.
Its share price closed at SR10.42 on the main market, marking a 0.1 percent increase.
Also, Itmam Consultancy Co. has been awarded a significant project by the Digital Government Authority to develop digital investment skills within the public sector.
The contract, officially granted on Jan. 19, is valued at more than 5 percent of the company’s total 2024 revenue.
According to a statement, the program aims to equip government employees with the expertise needed to enhance digital government investment efficiency, focusing on software license development aligned with legal and technical standards.
Its share price remained unchanged on Nomu at SR16.40.
