50 SKY SHADES - World aviation news

Lufthansa agrees on short-time work

Download: Printable PDF Date: 31 Mar 2020 07:02 category:
Publisher:
Lufthansa agrees on short-time work - Airlines publisher
Krista Kuznecova
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.



Loading comments for Lufthansa agrees on short-time work...


Recommended

Horizon International Flight Academy: more than 1,000 flight hours in its Bell 505 fleet

Horizon International Flight Academy has logged more than 1,000 flight hours in its Bell 505 fleet, mainly utilized to train military pilots. Horizon’s training academy is in the United Arab Emi...

MC-21-300 prototype will continue testing after painting

On June 25, 2020, the MC-21-300 test aircraft, painted at Spektr-Avia, Ulyanovsk, returned to Ramenskoye airfield (Zhukovsky, Moscow region), where it will continue its flights under the certification...

GA Telesis Engine Services opens Aircraft Engine Hospital Shop - SPAH

GA Telesis Engine Services OY - GATES, the engine heavy maintenance unit of global aviation integrator GA Telesis, LLC, announces the establishment of its dedicated Aircraft Engine Hospital Shop,...

The 1600th Embraer E-Jet delivered to Helvetic Airways

Embraer celebrated the delivery of its 1,600thE-Jet, an E190-E2. Helvetic Airways of Switzerland received the milestone aircraft. Airlines and leasing companies from some 50 countries have added...