The agreement presented by Lufthansa and the German services union and the negotiations that led to it are symbolic of the way collective negotiations are evolving in German businesses. At Lufthansa, the time of “one company, one union” has passed since Cockpit, the pilots’ union, wasn’t involved in the negotiations while Verdi and UFO (flying personnel) decided to form a “bargaining community.” In the end, only Verdi, which represented 33,000 of the company’s 51,000 German employees, was satisfied with the agreement reached. UFO, which represents 18,000 flying personnel, rejected the increase, notably because, at the same time, the management is asking for a savings program amounting to 10 percent of cabin crew costs and is preparing to recruit about 200 flight attendants. Verdi said the agreement was “decisive” and decided to accept the 3.5 percent increase after two years of pay freeze, and as the management announced a major restructuring and cost cutting program in the amount of €1.5 billion. The employees concerned will see their wages increase by 3.5 percent retroactively on January 1, 2012 and for 13 months. The holiday bonus, also known as 14th month, will increase by 5 percent and reach €1,075. Finally, the 5,000 employees of the catering subsidiary (LSG) will have to make do with a €250 single bonus for full-time employees, €100 for part-time workers.
The management of the German airline and the Verdi union announced, on Thursday, January 26, that they reached a collective agreement with a 3.5 percent wage increase in 13 months for only some of Lufthansa’s German employees. Indeed, employees in some subsidiaries will have to make do with a single bonus. Involved in the negotiations, the UFO flying personnel union refused the agreement. One of the reasons is that Lufthansa still plans on recruiting temporary flight attendants. The...
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