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Travel sector’s labor crisis to prolong Europe’s summer of discontent

After 21 years as a service agent at Air France, Karim Djeffal left his job during the COVID-19 pandemic to start his own job-coaching consultancy.
“If this doesn’t work out, I won’t be going back to the aviation sector,” says the 41-year-old bluntly. “Some shifts started at 4 a.m. and others ended at midnight. It could be exhausting.”

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Djeffal offers a taste of what airports and airlines across Europe are up against as they race to hire thousands to cope with resurgent demand, dubbed “revenge travel” as people seek to make up for vacations lost during the pandemic.
Airports in Germany, France, Spain, and the Netherlands have tried offering perks including pay rises and bonuses for workers who refer a friend.
Leading operators have already flagged thousands of openings across Europe. But the industry says European aviation as a whole has lost 600,000 jobs since the start of the pandemic.
Yet the hiring blitz can’t come fast enough to erase the risk of cancelled flights and long waits for travelers even beyond the summer peak, analysts and industry officials say.
The summer when air travel was supposed to return to normal after a two-year pandemic vacuum is in danger of becoming the summer when the high-volume, low-cost air travel model broke down — at least in Europe’s sprawling integrated market.
Labor shortages and strikes have already caused disruption in London, Amsterdam, Paris, Rome, and Frankfurt this spring.
Airlines such as low-cost giant easyJet are cancelling hundreds of summer flights and new strikes are brewing in Belgium, Spain, France, and Scandinavia.
As industry leaders head to a summit in Qatar this week, a major theme will be who bears responsibility for the chaos between airlines, airports, and governments.
“There is a lot of mud-slinging but every side is at fault in not coping with the resurgence of demand,” said James Halstead, managing partner at consultancy Aviation Strategy.
The aviation industry says it has lost 2.3 million jobs globally during the pandemic, with ground-handling and security hardest hit, according to Air Transport Action Group which represents the industry.
Many workers are slow to return, lured by the ‘gig’ economy or opting to retire early.
“They clearly have alternatives now and can switch jobs,” said senior ING economist Rico Luman.
While he expects travel pressure will ease after the summer, he says shortages may persist as older workers stay away and critically, there are fewer younger workers willing to replace them.
“Even if there is a recession, the labor market will remain tight at least this year,” he said.

Low morale

A major factor slowing hiring is the time it takes new workers to get security clearance, in France up to five months for the most sensitive jobs, according to the CFDT union.
Marie Marivel, 56, works as a security operator screening luggage at CDG for around 2,100 euros ($2,200) a month post-tax.
She says shortages have led to staff being overworked. Stranded passengers have been turning aggressive. Morale is low.
“We have young people who come and leave again after a day,” she says. “They tell us we’re earning cashiers’ wages for a job with so much responsibility.”
After much disruption in May, the situation in France is stabilizing, said Anne Rigail, chief executive of the French arm of Air France-KLM.
Even so, Paris’s Charles de Gaulle and Orly airports, where one union has called a strike on July 2, still need to fill a total of 4,000 vacancies, according to the operator.
And in the Netherlands, where unemployment is much lower at 3.3 percent, unfilled vacancies are at record highs and KLM’s Schiphol hub has seen hundreds of cancelled flights and long queues.
Schiphol has now given a summer bonus of 5.25 euros per hour to 15,000 workers in security, baggage handling, transportation, and cleaning — a 50 percent increase for those on minimum wage.
“That’s of course huge, but it still isn’t enough,” said Joost van Doesburg of union FNV.
“Let’s be honest, the last six weeks have not really been an advertisement for coming to work at the airport.”
Schiphol and London’s Gatwick last week unveiled plans to cap capacity during the summer, forcing more cancellations as airlines, airports, and politicians bicker over the crisis.

Blame game

Luis Felipe de Oliveira, head of global airports association ACI, told Reuters airports are being unfairly blamed and airlines should work harder to address queues and rising costs.
Willie Walsh, head of the International Air Transport Association, the global airline industry group meeting in Qatar, has dismissed talk of a breakdown in air travel as “hysteria.”
Walsh in turn blames part of the disruption on the actions of “idiot politicians” in places like Britain where frequent changes in COVID policy discouraged hiring.
The June 19-21 IATA meeting is expected to signal relative optimism about growth tempered by concerns over inflation.
Such gatherings have for years portrayed the industry as the positive face of globalization, connecting people and goods at ever more competitive fares.
But the European labor crisis has exposed its vulnerability to a fragile labor force, with the resulting rise in costs likely to push fares higher and add pressure for restructuring.
In Germany, for example, employers say many ground workers have joined online retailers such as Amazon.
“It’s more comfortable packing a hair dryer or a computer in a box than heaving a 50-pound suitcase crawling into the fuselage of an airplane”, said Thomas Richter, chief of the German ground-handling employers’ association ABL.
Analysts say the labor squeeze may raise costs beyond the summer but it is too early to tell whether the industry must step back from the pre-pandemic model of ever-rising volumes andcost-cutting, which generated new routes and kept fares low.
For some departing employees, however, Europe’s torrid summer signals a wake-up call for passengers and bosses alike.
“I personally think the very cheap flying…I just don’t know how they can really keep up with that,” said a former British Airways cabin crew member, 58, who has taken redundancy.

Read more:

UK transport minister says it will work with aviation industry to solve travel chaos

IATA says post-pandemic airport chaos around the world will get fixed

London’s Heathrow says despite pick-up, full travel recovery at least five years away

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Almarai signs multiple agreements to localize jobs through training and recruitment programs

Almarai signed a cooperation memorandum with the Food Industries Polytechnic, the
Transport General Authority, and the Saudi Logistics Academy to localize jobs in the
food and beverages sector through training and rehabilitation programs ending in
employment. This came within the first international conference on the labor market,
organized by the Ministry of Human Resources and Social Development on 13 – 14
December 2023 at the King Abdulaziz Convention Center in Riyadh.

‘These agreements are part of Almarai’s corporate program for the social responsibility
to achieve localization in the food industry sector, which is one of the top priorities of the
comprehensive strategic plans in Almarai, especially since the company is one of the
largest working environments in the kingdom, with more than 9,000 Saudi employees,
including more than 900 Saudi female employees.”Fahad Aldrees, Chief Human
Resources Officer of Almarai, said.

He added that the agreements signed to train and qualify young people are part of the
integrated initiatives and training and rehabilitation programs for national human
resources in Almarai. He pointed out that the company provided about half a million
employee training hours during 2022, raising its retention rate to 90% during 2022.

It is worth mentioning that Almarai is the world’s largest vertically integrated dairy
company, and the largest food and beverage producer and distributor in the Middle
East. Almarai was ranked among LinkedIn’s top 15 Saudi companies for professional
career development for 2022.

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SEBA Bank rebrands to AMINA Bank and continues to write its success story

a fully licensed Swiss crypto bank, announced today its new brand identity: AMINA Bank AG. The group operates
globally from its regulated hubs in Zug, Abu Dhabi and Hong Kong, offering its clients traditional and crypto banking services.
SEBA Bank made history in 2019 by becoming one of the first FINMA-regulated institutions to provide crypto banking services. This rebrand marks a new chapter for the company, which has proudly been in operation for more than four years. AMINA Bank is inspired by the same trailblazing ambition to lead the way for its clients and to write its own future as a Swiss-
regulated crypto bank offering services to its traditional and crypto savvy clients around the globe. The name ‘AMINA’ stems from the term ‘transAMINAtion’, meaning transference of one compound to another. AMINA is a brand driven by perpetual change, bringing together the various ‘compounds’ of traditional, digital, and crypto banking to unlock new potential and
growth for our clients. This vision of change represents the transformation of our clients’ financial future. Franz Bergmueller, CEO of AMINA, said: “We are delighted to introduce the world to our new brand identity. While we say goodbye to the SEBA name, we remain forever proud of the achievements made by the group under the former brand. “Our brand signifies a new era in the company’s growth and strategy; we are a key player in crypto banking and are here to define the future of finance. With our client-focused approach, our years of traversing traditional and crypto finance, we offer a platform for investors to build
wealth safely and under the highest regulatory standards.” “We are grateful to be encouraged by our supportive and committed investors who have been very helpful, supporting the growth of the company. We thank our employees in all the regions
for their dedication and client focus. As we look forward to 2024, our ambition is to accelerate the growth of our strategic hubs in Switzerland, Hong Kong, and Abu Dhabi, and to continue our global expansion, building on all the successes we have laid down over the past years.” Current clients of AMINA Bank (formerly SEBA Bank) will be unaffected by the rebrand other than encountering the new name; all operations will be business as usual across the board. The branch office based in Abu Dhabi and the subsidiaries in Hong Kong and Singapore will subsequently apply for a name change to align with the head office in Zug.

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Business

Uptime Appoints Mustapha Louni Chief Business Officer

Uptime Institute is pleased to announce the appointment of Mustapha Louni to the position of Chief Business Officer, a role specifically created to drive strategic leadership and client success. In this new role, Mr. Louni will assume responsibility for the global Uptime sales and marketing organizations and drive overall business value for all Uptime clients. He will retain his existing responsibilities overseeing operations in the Middle East, India, Africa, and the Asia Pacific regions. In this elevated capacity, Mr. Louni is poised to play a pivotal role in driving Uptime’s next phase of global expansion through strategic initiatives to enhance market awareness of the dramatically expanding global service lines and delivery capabilities of Uptime that uniquely support the global data center industry in its pursuit of ever higher performance through elevated availability, resiliency, sustainability, and cyber-security of digital infrastructure. Louni’s appointment renews and expands Uptime

Institute 39;s 30-year commitment to advancing excellence in the data center sector on a global scale. “Today we are experiencing the next phase of the one-time, planetary transformation from analog to digital. This unprecedented, once-in-a-generation growth in data center demand is primarily driven by continuing cloud adoption, the new promise of AI, and the demonstrable fact
that hybrid digital infrastructure is here to stay for the foreseeable future,” said Martin McCarthy, CEO, Uptime Institute. “These complex and nuanced market demands require a visionary talent like Mustapha Louni. He is someone who cannot only deftly manage specific aspects of the business but also remain ahead of accelerating changes and trends. He continues to earn client
trust and respect by timely delivery on demanding commitments while he also inspires and energizes colleagues and clients alike. I am delighted to announce Mr. Louni’s new position and know that he will continue to expand the impact that he has already brought to Uptime since his arrival.” In 2014, Mr. Louni joined the Uptime organization in the United Arab Emirates, leveraging his extensive experience from roles at Panduit and Schneider Electric in Paris and Dubai. As the company’s first commercial resource in the Middle East and Africa region, Mr. Louni played a pivotal role in expanding Uptime’s presence. Within a year, he successfully established what became and remains Uptime’s fastest growing regional office. Under his leadership, Uptime has
extended his impressive trajectory of growth in MEA to the Asia-Pacific regions, augmenting the Uptime workforce with dedicated team members spanning more than a dozen countries across these regions. A new Uptime office has been inaugurated in Riyadh, Kingdom of Saudi Arabia (KSA) this year, further fortifying the company’s ability to meet its commitment to sustained
growth and excellence and serve clients in critical, accelerating markets for digital infrastructure.

Uptime Institute began development of its proprietary and now globally recognized Tier Standards and its Tier Certifications 30 years ago to ensure that the mission critical computing needs of all organizations could be met with confidence and understood by executive management. Since that time, Uptime Tier Certification as well as other Uptime offerings including assessments and awards in digital infrastructure for ensuring business performance in areas of management and operations, risk and resilience, sustainability, and more recently cyber- security have gained global adoption. Uptime’s expanding success is based on delivering a
unique business service that is based upon unparalleled engineering excellence and technical mastery, while remaining vendor independent and technology agnostic.

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