Friday, January 30, 2015

Cargolux, labor unions in stalemate on new labor agreement

Cargolux 747-8R7F(SCD) (35811/1461) LX-VCF "City of Grevenmacher" smokes the mains on Rwy 7R as it arrives at Ted Stevens International Airport (ANC/PANC) in Anchorage, Alaska on May 5, 2013.
(Photo by Michael Carter)

Luxembourg-based Cargolux management continues to be stuck in difficult negotiations with Luxembourg labor unions after rejecting a collective work agreement (CWA) that expired at the end of December. Its conditions remain in place until the end of 2015.

However, management is hopeful it will resolve the stalemate with unions and reach an agreement on a new CWA, which will lay the foundations for securing Cargolux’s economic sustainability and survival in an increasingly difficult and competitive market environment.

A new CWA should bring lower personnel costs—particularly crew—and improved productivity in order to increase Cargolux’s competitiveness and preserve existing jobs.

The LCGB union said the signatory unions have decided to go into conciliation, hoping the conciliation process would lead to a breakthrough in negotiations. If the conciliation process fails, the unions have the right to start industrial action.

The major difference between Cargolux management and the unions lies in the scope clause, which was presented by the unions as a fundamental framework for a controlled global growth while safeguarding jobs in Luxembourg, LCGB said, adding the unions made several proposals in December that resulted in accumulated savings of up to $42 million.

Last September, the LCGB union called on Cargolux pilots to work to rule in protest against plans to add a second aircraft to its subsidiary Cargolux Italia.

(Kurt Hofmann - ATWOnline News)

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