Cargolux inks labour agreement with unions

August 07, 2019: Cargolux has signed two new collective work agreements with contracting unions Luxembourg Confederation of Christian Trade Unions (LCGB) and OGBL that will cover more than 1,300 employees at the airline. One agreement covers the period between December 1, 2018, and December 31, 2019, and the second will become effective as of January 1, 2020, until December 31, 2022.

"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 chief executive officer.

All parties 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. It underlines that all share a common vision for stability, growth, and prosperity at Cargolux.

The improvements include a salary increase of 6 percent for ground staff and 4 percent 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.

"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 %u2018B-Scale' should make it possible for Cargolux to hire the staff it needs," commented 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," said Michelle Cloos OGBL central secretary.

These new agreements will enhance Cargolux's ability to recruit additional required staff.