Lufthansa reaches accord on crisis funds and job security measures with venture capitalists
Lufthansa, the German aviation giant, has reached an agreement with the pilot union Cockpit (VC) on crisis contributions until March 31, 2022. This agreement, which applies to Lufthansa, Lufthansa Cargo, Lufthansa Aviation Training, and parts of the Germanwings pilots, is a significant step towards navigating the ongoing crisis.
The agreement includes a reduction in working hours with an equivalent salary adjustment, the suspension of wage increases, and the expansion of current savings measures. Lufthansa's board member for personnel, Michael Niggemann, expressed satisfaction with the significant contribution of the cockpit staff to crisis management.
Negotiations will continue in 2021, focusing on finding sustainable structural solutions in response to the changed conditions. The company rules out operational dismissals for pilots until March 2022. However, it's important to note that the agreement does not guarantee job security beyond its term.
The validity of the crisis agreement is contingent upon approval from relevant authorities. Lufthansa is working towards finding solutions that address the challenges posed by the crisis and the long-term structural changes. The company intends to use the crisis agreement duration to collaborate with VC to find these sustainable structural solutions.
While the exact names of the negotiators for Lufthansa and the pilots' union Cockpit who agreed on the crisis mitigation contributions until March 31, 2022, are not publicly disclosed, it's clear that this agreement is a testament to the collaborative efforts of both parties.
The agreement bases for extending short-time work for 2021, a measure that aims to avoid dismissals after the agreement's term. Lufthansa seeks to avoid layoffs through collaboration and negotiation, demonstrating a commitment to its workforce during these challenging times.
As the airline industry continues to grapple with the impact of the global crisis, Lufthansa's agreement with Cockpit serves as a model for other companies seeking to navigate the crisis while prioritising their employees' wellbeing. The negotiations for sustainable structural solutions are scheduled to continue in the future, with Lufthansa aiming to find solutions that address the long-term structural changes.
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