Germany: mini-increase in return for job security at Lufthansa

The Verdi union and the Air Traffic Employers’ Association (AGVL) reached, on May 1, a complicated agreement on a wage increase and job security for 33,000 ground staff working for the German airline.  The agreement provides, depending on the subsidiaries and categories, for an increase over 26 months ranging between 3% (reception and administration staff) and 5.2% (apprentices).  It also provides for a 6-month pay freeze and job security – 2 years for most employees and 7 years for the employees of new (existing or future) subsidiaries.  For them, two more collective agreements should be negotiated by the end of the year.  This agreement, which still needs to be accepted by Verdi’s committee on collective agreements by May 14, shows the problems experienced by a company implementing a wide savings program and is planning to massively invest into low-cost activities, with a new company on June 1, 2013.  (Ref.  130295)
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Four failed bargaining rounds and several warning strikes leaving nearly 150,000 passengers without a flight took place before Lufthansa Group’s social partners were able to find, on May 1, a solution to renew the collective agreement covering the approximately 33,000 ground staff, i.e. those from the leading company, Lufthansa AG, and the Lufthansa Technik, Lufthansa Cargo and Lufthansa Systems subsidiaries. This agreement will run between February 1, 2013 and March 31, 2015. negotiations fo

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