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Air France announces salary increases for employees

More than 38,000 employees of Air France will benefit from a five percent salary increase, in addition to a €1,000 bonus in response to inflation, the airline announced on Wednesday.

Air France announces salary increases for employees
An Air France plane is seen on the tarmac at Charles de Gaulle airport in Roissy-en-France, on September 8, 2022. (Photo by Chris Delmas / AFP)

The salary hikes and bonus are intended to offset the impacts of inflation, as well as to anticipate annual pay negotiations – and hopefully avoid the risk of strike action.

The employees concerned will be “ground staff, cabin crew and pilots,” the company said in a statement.

Air France decided on the amounts after consultation with trade unions, and noted that the “exceptional purchasing power bonus” will be paid next month.

During the summer of 2022, Air France cancelled several flights due to industrial action, as airport employees walked out over disputes in pay, as well as staff shortages following the Covid-19 crisis.

READ MORE: French air traffic control strike to ground half of scheduled flights

Air France explained that “the lowest salary levels will benefit starting November 2022 with a minimum increase of €130 gross per month (for a full-time employee).” 

In an effort to “respond to the exceptional situation” of “historically high inflation” the company made the announcement after France’s government increased the 2022 inflation forecast from 5 percent to 5.3 percent. 

The airline was able to make its first profit during the second quarter since the start of the pandemic, due to an increase in airline travel. However, the company said that despite these actions it “strongly constrained by its financial situation.”

Air France’s announcement came just ahead of a separate air traffic controller’s strike set for Friday, September 16th, which will cover all airports in France and is likely to see half of all flights cancelled. 

READ MORE: French air traffic control strike to ground half of scheduled flights

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ECONOMY

French economy beats growth forecast in first quarter

The French economy grew more than expected in the first quarter, official data showed on Tuesday, delivering good news to a government facing scrutiny over the country's huge debt pile.

French economy beats growth forecast in first quarter

The eurozone’s second biggest economy expanded by 0.2 percent between January and March compared to the previous quarter, according to the INSEE statistics institute, which had previously forecast zero growth.

“To all those who want us to believe that our economy is at a standstill: facts are stubborn. French growth is progressing,” said Economy Minister Bruno Le Maire.

“This is a new sign showing the solidity of our economy,” he said, adding that the “government’s strategy is paying off.”

France’s budget deficit has overshot government estimates, undermining President Emmanuel Macron’s pledge to bring national finances back on track within the next four years.

Ratings agencies have cast doubt on the government’s debt reduction target.

The public deficit widened to 5.5 percent of gross domestic product in 2023. The government aims to reduce it to three percent by 2027.

READ MORE: How France’s bid to tackle ‘wild’ budget deficit could impact you

French debt has grown to 110.6 percent of GDP — the third biggest ratio in the European Union after Greece and Italy.

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