Lufthansa Cabin Crew Union Members Back Cost Cut Deal
Cabin crew at Lufthansa have voted overwhelmingly in favour of a deal to stop pay rises and cut hours, the UFO trade union has said as the German airline battles to rein in losses due to the coronavirus pandemic.
Lufthansa reached the deal in June with UFO, which represents 22,000 cabin crew, to reap more than €500 million in savings from shorter hours and an equivalent cut in pay as well as a temporary reduction in pension contributions.
Last week, the airline put German workers on notice of compulsory layoffs, saying that the slump in travel and slow progress in union negotiations meant that cuts were unavoidable after the carrier lost €1.7 billion in a single quarter.
Lufthansa, which in June received a €9 billion government bailout to secure its future, said last week that it expected capacity to recover to only approximately 50% of normal by the end of 2020 and to two thirds of last year's level in 2021.
Lufthansa said on Thursday August 13 that it had walked away from talks with union Verdi on behalf of 35,000 ground staff over a package to cut staff costs and that it would only return to the negotiating table if Verdi offers significant cost savings.