50 SKY SHADES - World aviation news

Lufthansa agrees on short-time work

Download: Printable PDF Date: 31 Mar 2020 11:02 (UTC) category:
Publisher:
Lufthansa agrees on short-time work - Airlines publisher
Dana Ermolenko
Country: Germany Aircraft: Airplanes Airline: Lufthansa

Lufthansa has signed agreements with its works council and trade unions to introduce short-time working for cabin and ground staff in Frankfurt and Munich. This also applies to the management. An agreement with the pilots union “Vereinigung Cockpit” has not yet been reached.  The extent of reduced working hours is determined for employees depending on the loss of work and can be up to 100 percent. For some of the employees, reduced working hours began retrospectively in March 2020. The agreements apply to at least 27,000 employees of the approximately 35,000 employees of Deutsche Lufthansa AG. 

"With short-time working, we want to secure jobs of our employees in these difficult and unusual times. Our goal remains trying to avoid redundancies. The agreement of short-time work is an essential prerequisite for this. We will have to constantly review the economic parameters,” says Michael Niggemann, Chief Officer Corporate Human Resources and Legal Affairs at Deutsche Lufthansa AG.

Based on the current agreements, Lufthansa for the time being is increasing the short-time working allowance up to 90 per cent of the net salary lost through short-time working. How long Deutsche Lufthansa AG can pay these top-up amounts depends largely on the duration of the crisis.

In solidarity with all employee groups, the Lufthansa Supervisory Board, Executive Board and Management will also participate in the measures. The members of the Supervisory Board have voluntarily waived 25 percent of their compensation, the members of the Executive Board have waived 20 percent and managers not affected by short-time working have waived between 10 and 15 percent of their monthly basic compensation. The voluntary waiver of remuneration for the Supervisory Board, board members and all managers in Germany will apply from April 1, 2020 for at least a period of six months until the end of September. 

The proposal to discontinue the dividend for the 2019 financial year will further help in securing liquidity of Deutsche Lufthansa AG.

More than 30 companies in the Lufthansa Group, whose employees have German employment contracts, have already or will gradually fall under reduced working hours. These measures also come in effect for airlines in the Lufthansa Group in Austria, Switzerland and Belgium.





Recommended

Japan Airlines strengthens E-Jet operations with renewed Embraer Pool Program agreement

Embraer and Japan Airlines have strengthened their long-standing collaboration through a new multi-year agreement under Embraer’s Pool Program, ensuring continued maintenance, repair, and spare-...

KlasJet receives key FAA approval to launch ACMI and charter services in the US market

KlasJet has achieved a significant milestone by obtaining Part 129 Operations Specifications (OpSpecs) approval from the FAA, paving the way for the company's expansion into the U.S. market. As pa...

Star Alliance Paris CDG Lounge remains the World's Best Airline Alliance Lounge

The Star Alliance Lounge at Paris Charles de Gaulle Airport has been named the World’s Best Airline Alliance Lounge at the 2026 Skytrax World Airline Awards, securing the prestigious title for a...

easyJet switches to reusable crew meal trays throughout its UK and EU network

easyJet has introduced reusable crew meal trays, developed in partnership with Ecoffee Cup, across its UK and European fleet—cutting onboard waste and strengthening the airline’s wider sus...

Android Apps development in Riga, Latvia