Airline offers reduced pay increase while introducing cost cuts
As its opening move to start difficult wage talks with unions in Germany, Lufthansa has offered a 3.3% pay increase while introducing a new cost-cutting program in 2012. High fuel prices, the impact of EU’s ETS scheme and poor consumer confidence in Europe are impacting business. The German union ver.di is demanding a 6.1% pay increase and has dismissed a request from Lufthansa for longer working hours.
Unions are creating additional pressure for airlines. Competitor Air France-KLM announced its own pay freeze for French staff last week.
[pictured: Lufthansa 747; photo by John Crozier, copyright The Boeing Company 2011]