Air France unions braced for job cut talks

Unionists carry a chain to lock the headquarters’ entrance of Air France’s “HOP!” airline in Bouguenais, western France, on July 03 2020. (AFP)
Short Url
Updated 03 July 2020

Air France unions braced for job cut talks

  • At least half of the cuts will likely entail voluntary departures and retirement plans

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.


Trump advisers urge delisting of US-listed Chinese companies that fail to meet audit standards

Updated 07 August 2020

Trump advisers urge delisting of US-listed Chinese companies that fail to meet audit standards

  • Growing pressure to crack down on Chinese companies that avail themselves of US capital markets but do not comply with rules
WASHINGTON: Trump administration officials have urged the president to delist Chinese companies that trade on US exchanges and fail to meet US auditing requirements by January 2022, Securities and Exchange Commission and Treasury officials said on Thursday.
The remarks came after President Donald Trump tasked a group of key advisers, including Treasury Secretary Steve Mnuchin and SEC Chairman Jay Clayton, with drafting a report with recommendations to protect US investors from Chinese companies whose audit documents have long been kept from US regulators.
It also comes amid growing pressure from Congress to crack down on Chinese companies that avail themselves of US capital markets but do not comply with US rules faced by American rivals.
“We are simply leveling the playing field, holding Chinese firms listed in the US to the same standards as everyone else,” a Treasury official told reporters in a briefing call about the report.
The US Senate unanimously passed legislation in May that could prevent some Chinese companies from listing their shares on US exchanges unless they follow standards for US audits and regulations.
Democratic Senator Chris Van Hollen, who sponsored the bill described the recommendations as “an important first step,” but said that “without the added teeth of our bill, this report alone does not implement the requirements necessary to protect everyday American investors.”
The administration’s recommendations, if implemented via an SEC rulemaking process, would give Chinese companies already listed in the United States until Jan. 1, 2022, to ensure the US auditing watchdog, known as the PCAOB, has access to their audit documents.
They can also provide a “co-audit,” for example, performed by a US parent company of the China-based affiliate tasked with auditing the Chinese firm. However, companies seeking to list in the United States for the first time will need to comply immediately, the officials said.
A State Department official told Reuters the administration plans soon to scrap a 2013 agreement between US and Chinese auditing authorities to set up a process for the PCAOB to seek documents in enforcement cases against Chinese auditors.
China said on Friday that the two countries have “good cooperation” in monitoring publicly listed firms.
“The current situation is that some US monitoring authorities are failing to comply with their obligations, and what they are doing is political manipulation — they are trying to force Chinese companies to delist from US markets,” foreign ministry spokesman Wang Wenbin told a media briefing.
The PCAOB has long complained of China’s failure to grant requests, giving it scant insight on audits of Chinese firms that trade on US exchanges.
The report also recommends requiring greater disclosure by issuers and registered funds of the risk of investing in China, as well as mandating more due diligence by funds that track indexes and issuing guidance to investment advisers about fiduciary obligations surrounding investments in China.
The moves come amid rising tensions between Washington and Beijing over China’s handling of the coronavirus and its moves to curb freedoms in Hong Kong, among other issues.