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BLOOMBERG
Deutsche Lufthansa AG entered decisive talks with its pilots union as the German airline races to reach an agreement to avert the threat of a strike during the crucial summer travel season.
Negotiating teams at Lufthansa and the VC pilots union met with the aim at ending a dispute over pay and working conditions.
Lufthansa made an offer earlier to the union, which was rebuffed by labour representatives as “absolutely insufficient.†A spokesperson for the airline group said discussions continue and declined to comment further.
The pilots union said that while Lufthansa’s offer of an 8.5% pay increase appeared to meet its demands, the airline wanted that improvement to last for 30 months, whereas labour representatives want 12 months. Other major disagreements remain in areas including sickness leave, vacation entitlements and renumeration.
Pilot strikes are among most damaging industrial action an airline can face. While ground crew and cabin staff protests can lead to cancellations, pilots walking off their jobs often lead to the scrapping of flight schedules.
The stakes for Lufthansa are high. While the airline has structurally high costs that management says put it at a disadvantage against more nimble competitors, widespread strikes during the crucial summer travel season would complicate its recovery from the coronavirus bust.
The leadership team around Chief Executive Officer Carsten Spohr is particularly keen to avoid a repeat of a labour dispute with pilots that simmered over the past decade.