Merger AirFrance - KLM. HR-experiences Miriam Kartman (KLM)
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1 Merger AirFrance - KLM HR-experiences Miriam Kartman (KLM)
2 Agenda 1. Background (Merger AF/KL) 2. Structure 3. Governance 4. Starting position 5. Employee s perspective ( uncertainty ) 6. HR role from Air France/KLM-perspective 7. Bridging cultural gaps 8. Lessons learned
3 Background Merger AF/KL in effect since May 2004 Structure: one holding (AF/KL) with two separate operating companies and three businesses (Passenger, Cargo & Maintenance) Governance: Strategic Management Committee in which AF and KL are represented on a 50/50 basis (casting vote by AF)
4 Current Air France shareholders Structure Current KLM shareholders Air France-KLM Listed company 100% 100% Air France Operating company KLM Operating company
5 Air France KLM 1 Group, 2 Airlines, 3 Businesses Air France - KLM Passenger Business Cargo Business E&M Business
6 Corporate governance of the two airlines Control Each operating airline remains responsible for its own commercial and operational management on a daily basis (human resources, flight and ground operations, safety, etc.) and will be responsible for the implementation of the recommendations made by the SMC. KLM Management Board The KLM Management Board consist of three members including one appointed by Air France. Air France Executive Committee One KLM executive in the Air France Executive Committee.
7 Corporate Governance of the Group Chairman and CEO: Air France Chairman and CEO Vice-Chairman of the Board of Directors: President and CEO of KLM KLM appointed 4 directors on the Air France Board of Directors. Air France appointed 4 directors to sit on the KLM Supervisory Board, made up of 9 members. In 2007 Air France appointed 5 of the 9 members of the KLM Supervisory Board.
8 Piloting the New Group: Strategic Management Committee (SMC) Responsible for overall Group strategy, namely: Coordination of networks and hubs Budgets and mid-term planning Fleet and investment strategy Alliance strategy Composition: 8 members (4 representatives from each airline) Casting vote for the Air France-KLM Chairman and CEO
9 Good Starting position Mutual understanding described in a Framework Agreement with assurances in place for Dutch Government and KLM such as: Safeguarding two hubs (SPL/CDG) Further developing mainports and global networks Joint aim to realize synergies Preserve (national) identities and brands Existing Labour agreements and WC-arrangements remain unchanged Consultation and information with unions and WC structure kept in place
10 HR role from Air France/KLM perspective Works councils French law: information at the latest moment Dutch law: continuous exchange of information Before, during & after the merger process
11 HR role from Air France/KLM perspective Unions Ground staff unions focussed on job security concerned on state ownership Pilot union(s) focussed on job security & career perspective Before, during & after the merger process
12 HR role from Air France/KLM perspective Staff Manage emotional aspects: Air France privatised Fear of the future KLM sold blue feeling Distrust in guarantees Before, during & after the merger process
13 Labour Agreements (1) Discussions with the unions after announcement of the merger led to a general agreement with the unions with the following topics: Employability guarantee for next 5 years (under conditions) Recommitment to reduce costs with 10% Preserve functions within KLM on a fair base Possibility for a dialogue on holding/smc-level Center of excellence More specific agreement with pilots about preserving career opportunities, production in balance in good and bad times, pilot protocols
14 Bridging << cultural gaps >> Language of communication: no French, no Dutch but English Possibility to learn French, Dutch or English Management exchange Mixed training courses and meetings Exchange of best practises
15 Lessons learned Good starting position: Framework Agreement Process: careful and timely Communication: the right messages Intercultural aspect: perception is reality -> Internal Perception Monitor Mutual respect
16 Bridging «cultural gaps» Of course we have to bridge huge cultural gaps... such as the stripes; horizontal or vertical?
17 Bridging «cultural gaps» Of course we have to bridge huge cultural gaps... such as Cheese
18 Bridging «cultural gaps» Of course we have to bridge huge cultural gaps... such as 1 Airline Group 2 Ground Transport Systems
19 Bridging «cultural gaps» Of course we have to bridge huge cultural gaps... such as a baquette or a «haring»
20
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