NAO 2021: Annual mandatory Negociations adopted!

13
Mar

Salary increase & Bonus:  a challenging position

All of the company’s staff were able to see that the health crisis caused great damage to the activities of the travel and tourism industries (one example, one figure to illustrate thisseat reservations on planes by our travel agencies decreased by 81.5%). It’s no surprise then, that we saw Amadeus’ revenue plummet throughout 2020.

Company situation in 3 points


Our approach for the NAO was the usual one of preparedness, to maximize our negotiation potentials for the Nice staff. Despite these 3 facts known just before the negotiations began. 

  1. 2020 financial results published :   
    • Revenues down 61.0%
      or 2.174.0  million €  instead of  5,577.9 million € in 2019 
    • EBITDA decreased by  89.8%
      or  227.8 million € instead of  2.245.3 million € in 2019 
    • Adjusted income down 123.9%, a loss of 302.4 million € instead of a profit of 1.270.2 million in 2019 
  2. A management determined to maintain their strategy of reducing costs and limiting  expenses 
    • To maintain its cash capacity and liquidity to face 2021 and 2022. The fixed cost reduction program  is around 250 million on an annual basis, in addition to the cost reduction of 300 million announced in March 2020 (read Preparing Amadeus). 
  3. A  “financial  safeguard” plan saw the company close the year with approx.  3.5 billion of liquidity for:  
    • Loans payments 
    • Paying it’s structural costs 
    • Protecting its strategic investments,  including migration to the public cloud (etc). 


As you are already aware of, the company took many actions to adapt this situation and survive this crise.
 

It was in this context that, after many weeks of negotiations, the CFDT agreed to sign the NAO agreement on 26 February 2021. By signing, we perpetuate an achievement that could have been much less interesting if decided unilaterally by the management of Amadeus.

Salary increase

  • 2020 promotions – Salary increase in April 
  • 2021 promotions – Salary increase in July 
  • 2021 Selective increases will be performed for specific situations or groups such as: highly sought after positions, hot skills, largely below market positions, gender equity and maternity leave.

Bonus

5%

« exceptional special recognition» amount for permanent employees at staff level present during 2020 (PDR = WT or ET) effective in April 2021.

0%

No participation or «company bonus» as the calculation set by the legislation would give “zero” bonus due to our 2020 results. 


Benefits: new «paternity leave»

  • 2nd parent leave – Effective 1 March, the paternity leave increases from 14 to 28 calendar days or 32 days in case of multiple birth. This means that Amadeus will maintain the full salary for up to 28 days (beyond the daily allowances paid by the social security). 
    Read more (in french)…

Our impressions…

To be clear that while we commend the company’s effort made with respect to the exceptional premium, we are not totally satisfied as we think there was still more negotiating margin to compensate the employees for a year which had a heavy impact on the households. The CFDT evaluated a 14 to 19% average loss to household budgets in 2020 and requested a merited minimum salary increase for all employees.

But we sign the agreement because beyond our impression of “can do better”, is first of all because we are aware that times are difficult for employees, but also for the company, whose financial results are there to remind us this fact. But truth be told we applaud the company’s efforts with the allocation of this special recognition payout.

We are convinced that there is still ‘ grain to grind’ and plan on aggressive negotiation on teleworking. We hope that we will successfully negotiate and obtain more favorable conditions than initially proposed, notably through the distribution of an additional annual allowance, … but not only.

More on the NAO negociations.


Speak out loud!

We would like to know your impressions and opinions: Your feedback and comments are important to best defend your interests during the next negotiations, and in particular that of a possible new agreement on Teleworking and the hybrid/nomadic mode proposed by the management of Amadeus. Thanks for your feedback! Your representatives can listen and support you (in complete confidentiality).