Lufthansa wage talks underway

Lufthansa officials have begun negotiations with German labour unions ahead of major cost-cutting efforts.

Travel Insurance News - 01/03/2013

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The Frankfurt-based airline is seeking to establish new contracts for about 33,000 employees represented by the Verdi union and will likely announce job cuts following the talks.

Reports said on Tuesday that Verdi has requested that its members receive a 5.2 per cent wage increase, job guarantees and a profit-sharing deal. A spokesperson for the union said that the carrier’s workers needed stability ahead of the company’s forthcoming restructuring efforts.

However, Stefan Lauer, Lufthansa’s staff manager, called the demands “unacceptable” last month due to the carrier’s current financial standing as fuel costs and increased competition from low-cost airlines continue to take a toll on the company.

Most of the Verdi members are logistical and technical workers, although there are also a small number of cabin crew and ground staff members represented by the organisation.

Lufthansa is reportedly seeking to cut about 3,500 workers, primarily administrative and most of them based in Germany.

The news comes just days after the airline was forced to cancel more than 100 flights at Frankfurt airport due to heavy snowfall. Officials said the airline has now recovered and that most of the affected flights were domestic and short-haul network routes.

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