Air France-KLM chief executive Jean-Marc Janaillac will resign next week after failing to persuade Air France staff to accept a four year pay deal.
The French airline has suffered a series of strikes over 13 days that it said have cost it over EUR€300 million (USD$360 million), with the most recent on Thursday and Friday this week.
Unions are seeking a 5 percent pay increase this year, but Air France has offered 2 percent for 2018 as part of a four year deal worth 7 percent in total.
As a way through the impasse Janaillac launched a consultation process with all staff including an electronic vote on the company’s proposal. Prior to the vote, Janaillac said it would be hard for him to remain CEO if staff rejected the pay offer.
In the Friday vote, 55.44 percent of votes cast were against the offer, on an 80.33 percent participation rate. As a result, Janaillac is to leave the company and unions said they will go ahead with planned work stoppages on May 7 and 8.
Air France has now taken the proposal off the table.
Janaillac said he will draw “personal conclusions” of the results of the staff consultation and will submit his resignation at a board meeting on Wednesday. He said it will be their responsibility to take appropriate measures to ensure the continuity of the airline during a transition period.
Air France CEO Franck Terner, will oversee the day-to-day operations of the company while a successor is found.