Once again, the inmates have been taken over the asylum known as the German labor market and as a result operations will be paralyzed at airports throughout Germany tomorrow thanks to yet another strike.
As a result, Lufthansa has been forced to cancel nearly 1,000 of its 1,600 daily flights.
Airport workers at Frankfurt, Munich, Cologne, and Bremen plan to not do their jobs between 5am and 6pm.
The Union is obviously using this as an extortion tactic ahead of negotiations scheduled to take place on April 15 and 16. I suspect they’ll call additional strikes after tomorrow ahead of their talks. The Ver.di union is looking for a 6% raise for most public sector employees and they chose airport operations as their poster child for their latest tantrum.
If you are scheduled on a Lufthansa flight tomorrow, please check Lufthansa’s FLIGHT STATUS webpage for the most up to date info for your flights.
Earlier today, Lufthansa Pilots ratified a proposal that will put to end a long running labor dispute between Vereinigung Cockpit (VC) and the Airline.
The new deal, approved by 80% of LH’s pilots, is in place through June 2022 and addresses most issues that led to the myriad of strikes that affected passengers over the last couple of years. Most of the discord between pilots and Lufthansa had been pension plans for pilots before they reach full retirement age and job security for existing pilots.
Lufthansa, Lufthansa Cargo, and Eurowing pilots will receive a 10.2 percent raise in increments between now and June 2022 as well as an immediate bonus of 1.8 months worth of salary.
The deal also includes guarantees that Lufthansa will operate a minimum of aircraft between now and the deal’s expiration in 2022, along with an agreement for collective bargaining for future negotiations. Specifically, 325 aircraft need to be in service that are piloted by LH, LH Cargo, or Germanwings pilots.
For pilots, they also agreed to migrate their retirement plan from a defined benefit program to a defined contribution program, which reduces the stress on Lufthansa as far as funding retirement plans is concerned.
So it looks like we can fly the crane for the next 4.5 years without worrying about any flights being cancelled due to strike actions by the pilots.
Lufthansa has announced that it has reach an agreement with Vereinigung Cockpit (VC) that will finally put pilots under contract with a new labor deal. This announcement comes on the heels of negotiations that had taken place between LH, VC and an outside mediator in February 2017.
This finally puts to rest a labor squabble that has lasted since 2014 and has cost Lufthansa €500 million and forced passengers to endure 14 strikes.
Though minor details are yet to be worked out, the sides agreed to the following key points:
- Lufthansa will NOT outsource jobs to pilots who are not covered under the new agreement. Previously, LH suggested that up to 40 aircraft could be manned by cockpit crew that would be exempt from any labor agreement.
- Pilots will receive a pay increase of 11.2% retroactive to 2012 and prorated through 2022. They will also get a one time bonus of 1.8x their monthly salary.
- Lufthansa has promised to maintain a minimum fleet size of 325 aircraft, thus ensuring opportunities for hiring new pilots to enter Lufthansa’s Pilot Training Program, as well as creating opportunities for advancement of current pilots to move on to flying larger aircraft as their careers develop. The target of 325 aircraft needs to be reached or maintained by 2022.
- Lufthansa will be able to recharacterize the pension liabilities currently on it’s balance sheet. This accounting maneuver will result in an improved balance sheet to the tune of 100s of millions of Euros and be accretive to Lufthansa’s balance sheet for 2017. Pilots have agreed to convert their pension to a Defined Benefit Plan.
Once the deal is voted on and approved by pilots, it will be in force until May 2022.