Air France reaches pay deal with ground staff

The labor deal provided for an increase of 2 percent for 2019 for all Air France employees. (Reuters)
Updated 11 January 2019

Air France reaches pay deal with ground staff

  • The airline was hit by a series of costly strikes in 2018
  • The strikes led to the departure of chief executive Jean-Marc Janaillac in May and his replacement by former Air Canada executive Ben Smith

Air France said on Friday it had reached a pay agreement for 2019 with unions representing ground staff, as it seeks to move on from labor disputes which weighed on its results last year.
The deal will provide for pay increases of 1.8 percent, as well as money to finance individual bonuses and measures to make the payment of overtime easier, Air France said.
The airline was hit by a series of costly strikes in 2018, which led to the departure of chief executive Jean-Marc Janaillac in May and his replacement by former Air Canada executive Ben Smith.
On Thursday Air France announced the signing of a new agreement with cabin crew.
“Together with yesterday’s signing of the agreement with Air France cabin crew, this is proof of our dedication to re-establishing trust with all Air France employees,” Smith said in a statement.
The agreements come in addition to an agreement signed in October that drew a line under the standoff with unions. That deal provided for an increase of 2 percent for 2019 for all Air France employees.
The deal with ground staff was signed with the unions CFDT, CFE-CGC, FO and UNSA aerien Air France, the company said.


Gulf Marine CEO quits after review sparks profit warning

Updated 22 August 2019

Gulf Marine CEO quits after review sparks profit warning

  • Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence

DUBAI: Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12 percent down.

The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million, below $58 million that it reported last year.

A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down. Anderson could not be reached for comment.

The company, which in the past predominantly operated in the UAE, expanded operations and deployed large vessels in the North Sea and Saudi Arabia nine years ago and listed its shares in London in 2014.

Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence.

The North Sea has seen a revival in production in recent years due to new fields coming on line and improved performance by operators following the 2014 oil price collapse.

Still, the basin’s production is expected to decline over the next decade, according to Britain’s Oil and Gas Authority.

“(The CFO’s) review has coincided with a pause in renewables-related self-propelled self-elevating support vessels activity in the North Sea, which will impact several of the higher day-rate E-Class vessels,” Investec wrote in a note.

Gulf Marine appointed industry veteran Kersley as chief financial officer in late May as it sought to halt a slide which has seen the company’s shares fall nearly 80 percent last year and another 23 percent so far this year.

The company said market conditions remained challenging and that it was still in talks with its financial advisors regarding a new capital structure.

“Management, the new board and the group’s advisors, have been in negotiation with the group’s banks on resetting its capital structure and progress has been made,” it said in a statement.

Last year, Gulf Marine said contracts were delayed into 2019 as the company was seen to be in breach of certain banking covenants at the end of 2018.

The company said it was still in talks with its banks and individual lenders with hopes of getting a waiver or an agreement to amend the concerned covenants.