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CORPORATE SOCIAL RESPONSIBILITY REPORT 2009-10

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LIMITING THE IMPACT OF THE ECONOMIC CRISIS ON JOBS BY IMPROVING<br />

COMPETITIVENESS<br />

Air France-KLM aims to overcome the economic crisis by<br />

safeguarding competitiveness while preserving employment.<br />

Guided by a socially responsible employment policy, the<br />

Group encourages commitment and responsiveness. It is<br />

stepping up job mobility and support schemes, making staff<br />

more resilient and able to adjust to future changes.<br />

Responsibly rationalizing the number of jobs<br />

Limiting hiring is a key way to protect jobs in the economic<br />

crisis; it is therefore a path chosen by Air France-KLM in <strong>2009</strong><br />

and renewed in 20<strong>10</strong>. Other measures in turn supplement<br />

the curbs on hiring: introducing more part-time employment,<br />

temporary measures to cope with peaks in activity, and<br />

promoting greater mobility and teleworking.<br />

Measures implemented by Air France since autumn 2008,<br />

were successful and continue to apply, but Air France needs<br />

to become more competitive and put structures in place to<br />

swiftly mobilize the necessary gains in productivity. Natural<br />

attrition is not enough to achieve the workforce reduction<br />

target, so a plan for 1 684 voluntary redundancies in 20<strong>10</strong><br />

has been rolled out for ground staff and will apply to over<br />

1,800 people including some part-time employees. This<br />

entailed lengthy talks with social partners ahead of the human<br />

resources planning agreement, signed in July <strong>2009</strong>, which<br />

defines the procedure to follow for such a plan.<br />

For KLM, this strategy has led to a staff reduction of <strong>10</strong>% full<br />

time equivalent, along with the expiry of temporary contracts.<br />

Adapting to protect employment<br />

To protect employment several adjustments were made or<br />

increased in <strong>2009</strong>, showing the will and flexibility of staff in the<br />

face of vital changes.<br />

Following the total freeze on fixed term contracts and<br />

temporary work, internal resources have been relied on to<br />

meet temporary system overloads, notably on the operational<br />

front. This deepened solidarity between the companies and<br />

in <strong>2009</strong>, 160 Air France employees from various departments<br />

helped to reinforce operations, for periods lasting between<br />

several weeks and several months. In parallel and with the<br />

same goal, administrative staff spent over 600 working days<br />

helping customers check-in during peak times at airports.<br />

At KLM, office staff were asked to assist operational ground<br />

staff during peaks times, thus avoiding the need for temporary<br />

workers. In <strong>2009</strong>, almost 320 employees were voluntarily<br />

involved. Following the same rationale, every month on<br />

average 380 captains and co-pilots voluntarily assist KLM’s<br />

ground handling, as part of a program supported by unions<br />

and the working council. In addition over <strong>10</strong>0 crew members<br />

were employed with KLM’s subsidiaries.<br />

Promoting internal mobility<br />

Air France-KLM strongly supports internal mobility with a<br />

number of schemes, as part of a policy that helps to develop<br />

and preserve employment.<br />

Professional or geographic mobility for Air France ground staff<br />

puts a premium on internal resources. Therefore in <strong>2009</strong>, the<br />

Mobility Unit (Espace Mobilité) continued to provide support<br />

and guidance for these jobs transfers, receiving 1,600 visits<br />

and delivering 57 themed talks to a combined audience of<br />

nearly 600 people. It also developed new aids, with the April<br />

<strong>2009</strong> launch of workshops to teach staff how to draft resumes<br />

and cover letters, attend selection interviews and familiarize<br />

themselves with selection tests.<br />

At KLM, vacancies created by limited time contracts ending,<br />

retirement or other kinds of voluntary leave were left vacant<br />

when possible and otherwise filled by internal candidates,<br />

leading to 350 successful interdivisional matches in the fiscal<br />

year. The newly established Cargo Navigation Center offers<br />

information on vacancies, help in writing resumes, applications<br />

and career counseling.<br />

PROMOTING A RESPONSIBLE<br />

HUMAN RESOURCES POLICY<br />

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