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Factbox-Strike wave looms over Germany's Lufthansa in wage talks

Published 22/01/2024, 12:19
© Reuters. Empty railway tracks are pictured at Cologne main train station during a strike by Germany's GDL train drivers' union demanding wage increases and a shorter working week, in Cologne, Germany, January 12, 2024. REUTERS/Jana Rodenbusch/ File Photo
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FRANKFURT (Reuters) -German train drivers' union GDL announced a six-day nationwide strike on Monday, confronting Deutsche Bahn with the longest strike in its history, and further industrial action looms over the country's aviation sector.

Labour union Verdi is set to continue wage negotiations with airline group Lufthansa on Tuesday, saying strikes are an option to increase pressure on Germany's flagship carrier.

Below is a list of Lufthansa branches in negotiations, and what could be at stake for passengers: 

LUFTHANSA GROUND SERVICES: Verdi is demanding a wage increase of 12.5% for the approximately 25,000 employees of Lufthansa AG (ETR:LHAG), Lufthansa Technik and Lufthansa Cargo, or at least 500 euros ($544.30) more per month over a 12-month-period and a one-time payment of 3,000 euros to adjust for inflation.

The union has cited the increased cost of living and a heavy workload due to staff shortages as its main arguments for increased pay.

"At this point, I cannot rule out strikes," lead negotiator Marvin Reschinsky said.

Such strikes would have a major impact on Lufthansa's flight operations: In July 2022, during the previous bargaining round, a one-day strike by ground staff prompted the cancellation of almost 1,000 flights, bringing air traffic at the Frankfurt and Munich hubs almost to a standstill.

LUFTHANSA FLIGHT ATTENDEES: Since the start of negotiations in November 2023, cabin union UFO has demanded 15% more pay over a period of 18 months, a one-time payment of 3,000 euros to adjust for inflation and higher bonuses.

The peace obligation - during which industrial action by Lufthansa's 19,000 flight attendants would be illegal - ended at the end of December. Therefore, strikes would be possible but are not being prepared, UFO chief negotiator and head of collective bargaining policy Harry Jaeger said.

"Talks are ongoing, but we are still a long way from reaching an agreement," Jaeger said.

UFO's last major strike, at the end of 2019, led to 1,500 flight cancellations affecting around 200,000 passengers.

DISCOVER: Collective agreements are being negotiated for the first time at Lufthansa's leisure subsidiary Discover Airlines.

Two weeks ago, German pilots' union VC said the negotiations had failed, and called on cockpit staff to vote in a strike ballot that runs until Tuesday.

The biggest point of contention, from the VC's point of view, is a social partnership charter, presented as a demand by Lufthansa shortly before negotiations were concluded.

The charter should, according to Lufthansa, include binding rules for resolving conflicts as peacefully as possible. But the VC says the charter restricts the right to strike.

Late last year, Lufthansa had managed to limit the consequences of an initial five-hour strike, but it is unlikely to be able to do so in the event of longer collective action.

EUROWINGS: Lufthansa's subsidiary is negotiating higher wages for cockpit staff with VC.

An inflation clause, which automatically adjusts the salary of pilots to the inflation rate, is among the most contentious issues. In times of high inflation, Lufthansa wants to get rid of the clause, while VC wants to keep it.

In an attempt to protect the salary adjustment, the union has withheld from putting strikes on the table.

Verdi reached an agreement for Eurowings cabin staff at the weekend that will essentially lead to an increase in monthly pay by 10.7% to 14.4% and inflation compensation of 2,000 euros.

LUFTHANSA CITYLINE: Wage negotiations with VC and UFO are underway at Lufthansa's small feeder airline.

UFO has demanded, amongst other things, a wage increase of 15% over an 18-month-period and a one-time payment of up to 3,000 euros to adjust for inflation.

© Reuters. FILE PHOTO: Lufthansa's aircrafts are seen on the tarmac the day before VERDI union called airport workers at Frankfurt, Munich, Stuttgart, Hamburg, Dortmund, Hanover and Bremen airports to go on a 24-hour strike on Friday, at the Munich International Airport, Germany, February 16, 2023. REUTERS/Leonhard Simon///File Photo

According to its pilots, talks are sluggish. For the cabin crew, no agreement is said to be in sight either.

($1 = 0.9186 euros)

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