An immediate strike-stop would result in a 3,000 euro increase in the one-time payment – UFO is invited to a summit meeting with the board on Tuesday – Adjustment to fleet development will be necessary from 2016 onwards. The board of directors of Deutsche Lufthansa AG has decided to make a renewed attempt to resolve the bargaining disagreement with the UFO union.
The company already offers its 19,000 flight attendants remuneration and employment benefits that are far above industry averages, and are hardly matched in any other airline worldwide.
“In spite of this, since last Friday the UFO union called for its members to go on a continuous strike, something which is irresponsible and at the same time without precedent in Germany. The walkout is being carried out at the expense of millions of passengers and more than 100,000 Lufthansa Group employees. In view of this situation, we are doing everything we can to find a solution and end this strike. In the hope that our customers will not suffer any further harm due to the effects of the strike, we have made up our minds to improve our offer yet again. At the same time, fleet development must be subject to a critical analysis”, said Dr. Bettina Volkens, member of the board responsible for personnel and legal affairs of Deutsche Lufthansa AG.
In order to take up talks with UFO again, the Board, in an extraordinary meeting today, has decided the following:
Conclusion of a Collective Remuneration Agreement
Lufthansa is offering a total remuneration package with an improvement of a total of more than six percent:
- Lufthansa will significantly raise the commitment of a one-time payment to all 19,000 Lufthansa flight attendants and Lufthansa German Airlines employees from 2,000 Euro to 3,000 euros. The one-time payment would thus be an increase of 50 percent more than the previous offer.
- Over and above this, Lufthansa is offering all Lufthansa German Airlines flight attendants a salary increase of 1.7 percent, effective January 1st, 2016, as well as a salary increase of a further 1.7 effective at the beginning of 2017.
Retirement Scheme starting at 55 Years of Age
Lufthansa accepts the demands of the UFO with regards to a retirement scheme that begins at age 55. This shall be applicable without exception to all presently active cabin employees of Lufthansa German Airlines. This would provide every one of the 19,000 flight attendants in the future with retirement benefits that are unrivalled in the aviation industry.
With this offer package, Lufthansa materially fulfills all essential demands of UFO for all 19,000 cabin employees. Alternatively, UFO was offered the unchanged continuation of the current valid agreement for transitional care for all existing employees. However the union had turned this down.
Pension Scheme of Future Employees
Lufthansa also offers employees hired after January1, 2016 an attractive pension scheme that is unrivalled in the industry.
Further Open Issues
Lufthansa is ready to begin negations immediately concerning all further issues – including where a mediator is involved.
Summit Meeting of Company`s Board of Directors, in Order to Discuss Further Steps
Under the condition that all strike measures are ended immediately, Lufthansa has invited the leadership of UFO to a summit meeting with the chairman of the board of directors, Carsten Spohr, as well as Board Members Dr. Bettina Volkens and Karl Ulrich Garnadt tomorrow Tuesday, November 10, in order to discuss the details of the improved offer.
“Improving our offer again is a difficult step for us” said Karl Ulrich Garnadt, member of the board and chairman of the Lufthansa German Airlines board. “It is clear to us, that with this new concession, the urgent and necessary improvements in our cost and competitive position cannot be reached, and the gap between us and our relevant competitors will get larger.”
Adjustments to Fleet Development from 2016 on
With this background, the board of directors has unanimously decided to re-evaluate the development of Lufthansa German Airlines capacity and routes for 2016 and to re-assess them for the following years. In view of the as yet unsolved structural cost problems, the low-yielding Lufthansa German Airlines routes, especially to Asia, Africa and South America, will be subject to review.
“After this improved offer for all 19,000 flight attendants, we now expect a clear signal from the UFO. We are calling on the union to end the strike immediately”, stressed Karl Ulrich Garnadt.
Deutsche Lufthansa AG, Media Relations Lufthansa Group, 09.11.15