After over a year of negotiations between the management of the largest cargo airline in Europe and the OGBL and LCGB trade unions, a compromise has been met.
One of the deals concerns the period between 1 December 2018 and the end of 2019, while another will come into force on the 1 January 2020, lasting until the 31 December 2022.
The agreements should provide substantial benefits to more than 1,300 employees, with changes related to salary - ground staff pay to rise by 6%, pilots by 4% - and flight time limitations.
Personnel employed from December 2015 onwards will also see adjustments in terms of salary and holiday times, not only increasing job security but creating space for additional employment.
Press Release (in full)
Cargolux and Unions agree on new CWA terms
Luxembourg, 5 August 2019 – Today, after more than one year of intense negotiations, the management of Cargolux and its social partners, LCGB and OGBL, signed two new collective work agreements for Europe’s largest all-cargo airline. One agreement covers the period between 1 December 2018 and 31 December 2019 and the second will become effective as of 1 January 2020 until 31 December 2022.
All parties have come a long way in negotiations and have managed to achieve an agreement bearing in mind both employee wellbeing and the company’s continued stability. It underlines that all share a common vision for stability, growth and prosperity at Cargolux.
The two agreements will result in substantial improvements for the more than 1.300 employees covered by the airline’s collective work agreement. The improvements include a salary increase of 6% for ground staff and 4% for pilots over the 4-year duration of the contracts. Staff hired since December 2015 will benefit significantly from additional adjustments of salaries, off- day and vacation entitlements, bringing all staff to similar levels. These CWAs provide security of employment for the airline’s employees.
“I am pleased that we have managed to reach an agreement with our social partners. This agreement cements job security within our company while contributing to Cargolux’s sustainability on both social and economic fronts. Building on this solid foundation, we can strengthen our position as a leading player in the global air freight industry”, says Richard Forson, Cargolux President and Chief Executive Officer.
“The improvements in the new agreement became necessary after the employees' concessions made in the previous collective labour agreement. The new agreement addresses the main concerns of our members; a salary increase, improved work-life balance for employees and the pilots’ flight time limitations. The elimination of what has often been referred to as ‘B-Scale’ should make it possible for Cargolux to hire the staff it needs”, comments Paul de Araujo, LCGB Union Secretary.
“We are happy that the social partners could negotiate a substantial salary increase and measures improving the work life balance of Cargolux employees. This is a very important recognition of the employees’ efforts during the last years and their contribution to the good financial results of the company for all Cargolux employees, ground staff and pilots”, says Michelle Cloos OGBL central secretary.
These new agreements will enhance Cargolux’s ability to recruit additional required staff and also to remain one of the employers of choice in the industry and in Luxembourg.