LUFTHANSA:   Labor Peace With Pilots Comes With A Cost

LUFTHANSA: Labor Peace With Pilots Comes With A Cost

Lufthansa announced yesterday that they’ve agreed in principal to the recommendations that came out of mediation sessions with Vereinigung Cockpit.     Now it’s up to the Union to vote on the recommendations.   The vote is expected to take place by late March.

In summary, here is what the deal looks like:

  • Pilots will get a retroactive pay raise of 2% going back to January 1, 2016, and an additional 2.3% pay raise effective January 1, 2017.
  • On January 1, 2018, an additional raise of 2.4% will be paid, and yet another raise of 2% on January 2019.
  • A one-time ‘bonus’ will be paid that will amount to €5000-€6000 per pilot.
  • The deal would be in effect until 2019.

Keep in mind this is only one part of the multi-faceted labor issue.   The harder portion of reaching complete labor peace involves figuring out how pensions will be earned and paid.   So we’re not quite out of the woods yet.

Lufthansa, though agreeing to the proposal, did come back with a response that suggested consequences are in the offing as a result of this deal.    With the deal expected to cost Lufthansa at least €85 million annually, LH has suggested that it may use cabin crew on 40 aircraft that are not subject to the agreement.   Most likely this would come from the pilots being ‘acquired’ through the Air Berlin deal that sees LH operating AB aircraft on their routes beginning this year.   They are not subject to this agreement and would be one easy option to help mitigate at least some of the increase in labor cost.

Union representatives suggested that this deal may not be an easy one to sell to their members due to the issue revolving around the 40 aircraft that would have cockpit crew not covered by the agreement.

Also as part of the agreement and announcement, LH has indicated that no jobs will be impacted due to this arrangement.


Labor Peace During The Holidays?

Labor Peace During The Holidays?

While knocking on wood, there is hope that labor peace will exist between Lufthansa and Vereinigung Cockpit (VC) through the Holidays.

In comments coming out of Frankfurt, it appears that both sides have agreed to a new series of mediation in an attempt to finally bridge the gap between the union and the airline.   So I’m cautiously optimistic that the union will not pull any stunts that seek to hurt passengers during one of the busiest travel season of the year.

Obviously past mediations have yielded nothing but more strikes and passenger grief but there’s always hope of reaching a deal.  Just like there’s hope of winning the lottery.

The labor dispute will enter it’s fifth year in 2017.  Pilots have been working without a new deal since 2012 and I suspect that trend to continue for the foreseeable future.


LUFTHANSA Strike Update For Tuesday And Wednesday

LUFTHANSA Strike Update For Tuesday And Wednesday

Lufthansa has announced that even though strikes have been called for Short Haul  on Tuesday, and for Short Haul and Long Haul flights on Wednesday, they will be able to conduct the majority of their timetable for both days.

For Tuesday, LH expects to operate 2184 of their 3000 scheduled flights.   All Long Haul flights will operate as scheduled.

For Wednesday, LH expects to operate 2110 of their 3000 scheduled flights.   It appears that the bulk of their Long Haul flights will be impacted.

Please follow this link to look up the status of your flight.   If you are affect, please contact the airline, frequent flyer program, or travel agent that issued your ticket so that you can be re-accommodated.  Follow @LufthansaNews on Twitter for the latest developments regarding the strike.