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Old 8th Jul 2001, 10:53
  #75 (permalink)  
Tom Tipper
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Something which would make Mr Tyler angry (and no doubt 411A) - proof that sometimes being other than passive recipients of managerial heavy-handedness may be worthwhile:

From the German Press two days ago:
--------------------------------------Business: Lufthansa pilots accept new contract, union says


The Associated Press


BERLIN (July 6, 2001 1:33 p.m. EDT) - After four months of negotiations and two costly strikes at Europe's second-largest airline, Lufthansa pilots have accepted a pay package that promises a big wage hike, the pilots' union said Friday.

Vereinigung Cockpit, which represents 80 percent of Lufthansa's 4,200 pilots, said 86 percent backed the accord in a postal ballot that began three weeks ago after negotiators reached a deal mediated by former German Foreign Minister Hans-Dietrich Genscher.

Rocking the boat in a country accustomed to moderate compromise between industry and unions, the pilots insisted they needed a big raise to put them on a par with their peers in other countries.

Including performance-related pay, the new contract offers flight captains a rise of almost 30 percent in the first year of the three-year deal.

To push its demands, pilots staged two 24-hour strikes in May, forcing the German flag carrier to cancel hundreds of flights and costing the company more than $23 million.

Already feeling a downturn in the world economy and restrictions on air traffic because of inadequate airport capacity, Lufthansa blamed the expensive package and damaging strikes for forcing it to issue a profit warning.

The company last month scrapped an earlier forecast of a profit of 1 billion euros ($840 million), saying profit should now come in between 700 million euros and 750 million euros ($590 million and $630 million).

Chief Executive Juergen Weber last month said Lufthansa might sue for damages of almost 150 million marks ($64 million) resulting from the strike.

Under the three-year agreement, pilots are guaranteed a 2.8 percent raise in the second year, plus an additional raise based on average pay settlements in other German industries and another boost based on company profits. The third year's salaries will be based only on average pay settlements and profits.

Before the hike, a starting Lufthansa pilot earned a base salary of about $50,000 a year, while a veteran could earn up to $140,000.

Lufthansa is the second-largest passenger airline in Europe behind British Airways and second only to FedEx in cargo delivery. It operates flights to 340 destinations in 90 countries.

Shares in Lufthansa were down about 0.4 percent Friday, following most German stocks lower in late trading in Frankfurt. The stock has dropped about 30 percent this year.