Cargolux yesterday (5 August) after more than one year of intense negotiations agreed on two new collective work agreements with the trade unions LCGB and OGBL.
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 said they 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.
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 six per cent for ground staff and four per cent 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,” said Richard Forson, Cargolux president and CEO.
Cargolux said these new agreements will the carrier’s ability to recruit additional required staff and also to remain one of the employers of choice in the industry and in Luxembourg.
“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,” added 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,” noted Michelle Cloos, OGBL central secretary.