Company takes account of labour court proposals
Wednesday 24, March 2010
In the current pay dispute with pilots, Lufthansa has put forward an offer to the Vereinigung Cockpit pilots’ union. The offer is based on a compromise settlement reached at the labour court in Frankfurt on 22 February.
In its formal offer tabled on 25 February, Lufthansa accedes to the concern expressed by the union on job security. The package also takes account of the cost structure improvements pledged by the union as well as the union’s concerns over pension benefits. Lufthansa management and the union have previously made numerous attempts at the negotiating table to reach a settlement on this basis. The Vereinigung Cockpit has nonetheless suspended the talks.
The proposals package contains the following elements:
- Extension of the existing pay accord up to the end of 2010 (“pay freeze“) and productivity improvements in direct air traffic in accordance with the proposals put forward by the union at previous talks
- Retention of job security up to the end of 2012 for the cockpit jobs encompassed in the corporate pay agreement in the Lufthansa Group with simultaneous extension of the collective bargaining accord up to year-end 2012.
- Improved pension benefits for pilots no longer fit for service and for the transitional period up to the legal age for retirement for Lufthansa pilots, who have taken employment with Germanwings and Condor.
- Lufthansa Executive Vice President Finance & Human Resources, Dr. Roland Busch: “We have put forward an offer to the Vereinigung Cockpit pilots’ union, which is commensurate with the Company’s situation and the business environment. At the same time, we must ensure in the interests of all Lufthansa employees that the Company operates with competitive structures. Cost increases must on all accounts accordingly be avoided. Only in that way can we secure jobs at the Company. On that basis, we are also willing to safeguard jobs contractually. In the final analysis, a solution can only be reached at the negotiating table.“
In a compromise settlement reached at the Frankfurt labour court on 22 February, both sides had accepted the court’s constructive proposals to return immediately and without pre-conditions to the negotiating table in order to negotiate on pay and working conditions for employees in Germany.
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