Donkey Duke
26th Jun 2010, 16:20
[url]http://online.wsj.com/article/BT-CO-
FRANKFURT (Dow Jones)--Deutsche Lufthansa AG (LHA.XE) said Friday staff costs will be reduced under the agreement reached with a pilots' union after a protracted labor dispute, while strategic flexibility will be left to management.
"We particularly value the concessions [pilots' union] Vereinigung Cockpit made in the wage area, which is an important contribution to lowering Lufthansa's costs in a sustainable way," said Roland Busch, negotiator and chief financial officer at Lufthansa's passenger operations.
Busch said he is content with the deal. "Like always in mediation, both parties had to make concessions," he said. The deal will require a lot from Lufthansa, but it also gives the company a high level of reliability, he added.
Late Thursday, Lufthansa and VC said they accepted a mediator's proposal, ending their labor dispute. They agreed to a pay freeze until March 2011, and the deal also protects jobs and assures the union's input in growth plans for the German airline.
Lufthansa said the scope clause for regional units will be extended to 95 seats from 70. This means all aircraft with a seating capacity of 95 or less can be deployed at Lufthansa's regional subsidiaries.
-By Kirsten Bienk and Hilde Arends, Dow Jones Newswires; +49 69 29 725 506;
Back in the States, if you give up Scope, you have lost it forever. Any reason Lufthansa pilots allowed this? An explanation would be nice. DD
FRANKFURT (Dow Jones)--Deutsche Lufthansa AG (LHA.XE) said Friday staff costs will be reduced under the agreement reached with a pilots' union after a protracted labor dispute, while strategic flexibility will be left to management.
"We particularly value the concessions [pilots' union] Vereinigung Cockpit made in the wage area, which is an important contribution to lowering Lufthansa's costs in a sustainable way," said Roland Busch, negotiator and chief financial officer at Lufthansa's passenger operations.
Busch said he is content with the deal. "Like always in mediation, both parties had to make concessions," he said. The deal will require a lot from Lufthansa, but it also gives the company a high level of reliability, he added.
Late Thursday, Lufthansa and VC said they accepted a mediator's proposal, ending their labor dispute. They agreed to a pay freeze until March 2011, and the deal also protects jobs and assures the union's input in growth plans for the German airline.
Lufthansa said the scope clause for regional units will be extended to 95 seats from 70. This means all aircraft with a seating capacity of 95 or less can be deployed at Lufthansa's regional subsidiaries.
-By Kirsten Bienk and Hilde Arends, Dow Jones Newswires; +49 69 29 725 506;
Back in the States, if you give up Scope, you have lost it forever. Any reason Lufthansa pilots allowed this? An explanation would be nice. DD