This document discusses two human resource issues facing Air France: 1) inefficient allocation of human resources and 2) changes in working conditions. For issue 1, Air France had 94,417 employees in 2015 but was losing competitiveness and accumulating debt due to overstaffing. Planned job cuts of 2,900 positions led to violent protests. For issue 2, changes to pay and working conditions, such as reduced bonuses and increased hours, caused employee resistance since they were not consulted beforehand. The document recommends improving workforce planning, increasing communication and consultation with unions, and enhancing employee motivation to address these issues.

2. INTRODUCTION
 The main French flag carrier in aviation sector.
 Founded on the 7th of October 1933.
 A member of the SkyTeam airline alliance.
 Is in partnership with KLM.
 Serves around 168 destinations in 93 countries.

3. INTRODUCTION
 Few years back, there were some controversial
issues which drew a fence between the
managers of the airline company and its
employees.
 Two critical HR issues have been identified:
1. Inefficient allocation of human resources
2. Changes in working conditions

4. ISSUE 1:
INEFFICIENT ALLOCATION OF HUMAN
RESOURCES

5. ISSUE 1: INEFFICIENT ALLOCATION OF HR
As of 2015, there were 94,417 employees to
control 235 fleets.
Air France accumulated a debt of €619 millions in
the first half of 2015 due to high number of staff.
On the 5th of October 2015, it planned to cut 2900
jobs (1700 ground staff, 300 pilots and 900 cabin
crews).

6. CONSEQUENCES OF ISSUE 1
Having too many staff makes the company lose its
competitiveness.
Cash flow problems (financial crisis) and unable to
pay the debtors on time.
The restructuring of the plan prompted a violent
reaction from the workforce.
Intervention of the Syndicat National des Pilotes de
Ligne (SNPL) – members attacked the executives of
Air France in a meeting.

7. CONSEQUENCES OF ISSUE 1
The executives and managers had their shirts ripped
off and had to climb the fence to flee.
Tall organizational structure = Communication
problems between the management and staff.
Information & instructions are often distorted and
misunderstood.
Lack of personal attention given to staff and as a
result, staff become demotivated.
Lack of co-ordination – Some pilots get more free
times than others and are paid more.

8. RECRUITMENT & SELECTION THEORY
In the Journal of Business Strategy (of Edward L.
Gubman):
“The basic mission of human resources will always be
to acquire, develop, and retain talent; align the
workforce with the business; and be an excellent
contributor to the business.”
Those 3 challenges will never change.
Planning ahead will help to reduce the necessity to
fire or move employees in different areas if they
weren’t brought on properly.

9. HOW TO AVOID OVERSTAFFING?
Proper workforce planning – Forecasting the
number of staff to be required in the coming years.
Temp labor – The use of flexi-time workers instead
of full-time employees.
Job enlargement – Making employees do some
different work which requires more skills and to
increase their responsibilities.
Layoff or retrenchment of unneeded staff –
Usually the last measure to adopt when facing the
problem of overstaffing.

10. QUOTE:
“The hardest challenge being an HR manager, is that
sometimes you have to be the LAWYER, the JUDGE and
the HANGMAN.”
− Hassan Choughar

11. ISSUE 2:
CHANGING WORKING CONDITIONS

12. ISSUE 2: CHANGING WORK CONDITIONS
Night bonuses to be cut from 50% to 40%.
Lower pay for ground works.
50% reduction for ground instructors.
Crews to work 100 hours additionally per year.
As from 2017, cabin crews to have only 12 rest
days on an annualized basis.

13. CONSEQUENCES OF ISSUE 2
Employees are refusing to abide by the new rules
and regulations of Air France.
It becomes imperative for female cabin crews to
wear veil and headscarf when outside the plan in
Tehran (cultural differences). So, the female cabin
crews are resisting to change.
Staff were not consulted before the board took new
decisions regarding new work policies.

14. CONSEQUENCES OF ISSUE 2
Some members of the staff do not agree with those
new policies and decided on go for an industrial
unrest.
This resulted in lack of motivation and low moral at
work.

15. HERZBERG & THE ‘TWO FACTOR’ THEORY
Motivating factors include promotion opportunities,
achievement, recognition for good work, and
responsibilities.
Improving the working environment will lead to
employees being more motivated. Staff should be
aware about the changeovers in the conditions of
work as well as the plans of Air France (Hygiene
Factors).

16. J. STACY ADAM’S EQUITY THEORY
At present, senior pilots earn about €208,000 and fly
an average of 2 hours a day long-haul and 1 ½ hours
a day short-haul.
Senior pilots get more free time and are paid more
which is UNFAIR.
Hence, the differences in salaries should be
eradicated.
For EQUAL work, there should be EQUAL pay!

17. VROOM (1932-) & EXPECTANCY THEORY
This theory is not about self-interest in reward but
about the associations people make towards
expected outcomes and the contribution they feel
they can make towards those outcomes.
Motivation will occur when there is Valence,
Expectancy and Instrumentality (V x I x E).
The quantity of workers does not matter, quality of
work matters!
A positive link between effort and performance.

18. REDUCE CONFLICTS CAUSED BY CHANGES
IN WORKING CONDITIONS
Communication with staff – Employees should be
consulted before Air France takes any decisions.
Build good relationships with the trade union –
holding meetings with them to update them about
the changing policies of the company.
Staff motivation through rewards like bonuses,
performance-related pay and fringe benefits.
Review of employment contract – write the
conditions of work clearly.

19. QUOTE:
“If you fulfill the wishes of your employees, they will
fulfill your visions.”
− Amity Kalantri

20. CONCLUSION
Air France has a long way to go before it can stabilize its
workforce and overcome the obstacles that it created
by itself. The company has the possibility to be one of
the leading companies in the industry but it has to
make sure that employees’ requirements are met!

21. THANK YOU