It had to happen. On Thursday, September 14, 2023, at exactly 6 a.m., the vast majority of Cargolux employees (including all the company’s mechanics) went on strike. They went on strike. The planes were grounded.

28 bargaining sessions and 5 meetings with the National Conciliation Service (NCS) over the past few months have yielded nothing. In a legal vote last July, a large majority of members of the two unions at the company had overwhelmingly rejected management’s latest proposal. And the unions had warned Cargolux management. If it continued to turn a deaf ear to the employees’ legitimate demands, the next step would be taken. And so it was.

As soon as the strike was announced the day before, management tried to launch a polemic to discredit the strike movement, in particular by leaking confidential information such as the amount of profit-sharing bonuses or staff salaries. However, as the unions are quick to point out, the wage increase demanded cannot be linked to the company’s profit-sharing bonus. On the one hand, this bonus depends on the net profit achieved by the company and its employees over the course of a year. Secondly, the amounts disclosed relate to the years 2020, 2021 and 2022 – the pandemic years – when the company achieved record results. They do not represent sustainable profits. And in view of the investments planned for the refleeting of Cargolux, the payment of such a bonus in the coming years is highly unlikely and therefore does not represent a sustainable improvement in wages, unlike a salary increase. Moreover, the wage increase demanded by the union camp corresponds exactly to the result of the negotiations obtained in 2019, when the company’s financial situation was less favorable.

It should also be remembered that it was the air freight employees who made it possible to supply Luxembourg during the pandemic by working up to 12 hours a day with great flexibility at the expense of their private lives.

The unions also emphasize that all their demands are aimed at ensuring the attractiveness of jobs at Cargolux. This is necessary in view of future recruitment needs due to the large number of retirements, the shortage of technical staff and pilots in the aviation sector, and the significant wage improvements granted by competing airlines.
For three days, the unions and employees of Cargolux will remain united and determined in their struggle. Messages of solidarity poured in. Luxembourgish singer-songwriter Serge Tonnar also came to support the strike.

On Saturday, September 16, management finally resumed dialogue by inviting the unions back to the negotiating table. An agreement was finally reached in the early evening. The strike was called off immediately. It was a good agreement that covered most of the unions’ demands:

A total wage package of 5.5% over 4 years, including the introduction of a new, transparent wage scale on January 1, 2024, which recognizes the seniority of technical maintenance staff.

A guarantee of protection against inflation, ensuring equal treatment for all Cargolux employees in the event of an index cap or a degressive indexation system.

Respect of the legal provisions on co-decision between management and employee representatives for the internal teleworking system.

The resumption of constructive social dialogue.

The new collective work agreement is valid until August 31, 2027.
The OGBL would like to pay tribute to the commitment and support of Cargolux employees throughout these collective negotiations. Their courage and solidarity made all the difference.

Cargolux, OGBL and LCGB are pleased to announce that an agreement has been reached for the basis of a new CWA between all parties, including the four blocking points regarding a salary increase envelop of 5,5% commencing on 1^st September 2023 until 31^stAugust 2027 (including a revised salary scale for maintenance technical staff), an indexation protection and the Company’s policy regarding Working From Home.

Following this, the strike will cease with immediate effect and all striking CWA employees will return to work.

The negotiations were conducted in the presence of the President & CEO of Cargolux, the National of OGBL and the President of LCGB.

This sets the future of an enhanced social dialog between Cargolux and the Unions, taking into account the requirements of all parties.

Cargolux remains a key pillar of the logistics industry in Luxembourg and the commitment of all parties is aimed at ensuring that this continues.

Communicated on September 16th September

The strike that started on September 14th at Cargolux will go down in the history of Luxembourg’s aviation. The employees are determined and united in the face of a management that is sowing controversy among the general public.

The unions would like to congratulate all the strikers for their perseverance and firmness in the context of the dispute over the renewal of the collective agreement. The first day of the strike was a resounding success, with all mechanics on strike and all aircraft grounded. The financial losses to the company will be significant if management doesn’t call the unions back to the bargaining table soon.

One thing is certain: Cargolux unions and staff are united and determined and will continue to strike until all union demands are met and a global agreement is signed.

Cargolux employees and unions are astounded by the controversy the CEO is stirring up in the media by leaking confidential information at will, such as the amount of profit-sharing bonuses or employee salaries.

This is a disgraceful tactic whose sole purpose is to denigrate Cargolux employees and their legitimate demands by provoking social envy in public opinion!

These maneuvers are unworthy of a managing director, and it is therefore appropriate to ask whether the managing director actually has the necessary qualities to manage Cargolux. His reaction to the current social conflict clearly shows that this does not seem to be the case.

Communicated by OGBL and LCGB,
September 15, 2023

Following the announcement that Cargolux employees will go on strike on September 14, Cargolux management has set out its position on the social conflict. Contrary to management’s claims, the union’s demands are neither unrealistic nor disproportionate.

For the OGBL and LCGB, the various demands are inextricably linked. Only a global agreement on all the points of contention can put an end to the strike, which begins tomorrow morning. In light of the position taken by Cargolux management this morning, the unions would like to reiterate the points of contention.

Under no circumstances can the 6% wage increase demanded by the unions be linked to the company’s profit-sharing bonus. On the one hand, this bonus depends on the net profit that the company and its employees have been able to achieve over the course of the year. On the other hand, the profit-sharing bonuses paid for 2020, 2021 and 2022 are the result of an exceptional situation and record results due to the pandemic and do not represent a lasting achievement. Nevertheless, the amount of the profit-sharing bonuses paid in 2006, 2010 and 2018 was significantly lower than the amount paid in the last three years in connection with the pandemic. The investments planned for Cargolux’s refleeting make the payment of such a bonus much less likely in the coming years and therefore, unlike a salary increase, does not represent a sustainable improvement in wages.

With regard to the union’s demand for a 6% wage increase, it is worth recalling the increases granted over the past 20 years. In the entire period from 2002 to 2018, pilots did not receive a single wage increase, while ground staff only received a 1% increase in 2006. Only in 2019 will further linear salary increases be implemented: 1% on average over 4 years for pilots and 1.5% on average over 4 years for ground staff. Taking into account inflation and the very moderate salary increases over the past 20 years, a 6% salary increase is not unreasonable, especially in view of the excellent results achieved by the company in recent years. It should also be noted that a 6% salary increase is not unrealistic, as it corresponds exactly to the outcome of the 2019 negotiations, when the Company’s financial situation was less favorable. To date, management has only submitted a written proposal for a 4% increase over 4 years. Contrary to the CEO’s claims, a 5% increase over 5 years has never been officially presented and the unions reject this attempt at public bargaining.

Regarding the unions’ demand for an inflation guarantee, the unions would like to point out that the index is an integral part of the collective bargaining policy, while without the index the current collective bargaining policy would not be possible. Moreover, mechanisms similar to the Luxembourg index have been negotiated with other European airlines. In the face of recurring attacks on the index by employers’ organizations, Cargolux’s dynamic wage structure could no longer be maintained in the absence of the index or in the event of a cap on the index. Such a cap would no longer guarantee equal treatment for all employees and would disrupt wage structures and collective bargaining. In order to ensure equal treatment for all workers, the unions demand a guarantee of protection against inflation in the event of a legal cap on the index or the introduction of a degressive indexation system in the law. In the latter case, Cargolux would guarantee a 2.5% adjustment to the gross salary of all employees for each increase in the index band. Specifically, the company would compensate the part of the 2.5% index adjustment that is no longer covered by the law. This guarantee does not apply in the event of a legislative adjustment involving the elimination or postponement of an index band or a general and uniform reduction in the percentage of the index band.

Regarding the negotiation of a new salary scale for ground staff, the unions would like to point out that management signed an agreement to this effect in the last collective agreement. Going back on commitments already made is out of the question! Over the entire period from 2022 to 2018, ground staff received only a 1% increase in 2006. The linear salary increase of 1.5% for the years 2019 to 2022 cannot therefore be used as an excuse to break the agreement on a new salary scale for ground staff.

Finally, the OGBL and LCGB would like to emphasize that all their demands are aimed at ensuring the attractiveness of jobs at Cargolux. This is necessary in view of future recruitment needs due to the large number of retirements, the shortage of technical and ground staff in the aviation sector and the significant wage improvements already achieved by competing airlines.

To ensure the long-term future of Cargolux, investment in the company’s refleeting must go hand in hand with investment in its employees. Attractive jobs for an attractive Cargolux – that is the only reason for the workers to strike tomorrow morning!

Press release from OGBL and LCGB, September 13, 2023

In the context of the negotiations for a new collective agreement at Cargolux, the OGBL and the LCGB decided on September 8, 2023 not to conciliate, paving the way for industrial action.

A large majority of the members of both unions formally rejected Cargolux’s latest proposal in a ballot held in the second half of July 2023. After 27 negotiating sessions and 5 meetings with the National Conciliation Service (Office National de Conciliation – ONC), no agreement was reached between Cargolux management and the unions at the last ONC meeting on August 31st.

In view of this situation, and taking into account that the legal deadline of 16 weeks for the conciliation procedure expired on July 14, 2023, the two unions declared on September 8, 2023 that the dispute over the Cargolux collective work agreement would not be settled by conciliation.

The main reasons for the failure of the collective bargaining negotiations are as followsthe employer’s

• proposal for a 4% salary increase over 4 years, which is insufficient in view of the excellent results achieved in recent years and inflation;
• the unions’ demand that the collective agreement include an inflation guarantee to ensure equal treatment for all Cargolux employees in the event of a change in the legislation on automatic wage indexation (capping or similar measures, which in this case would disrupt wage structures and collective bargaining);
• management refuses to negotiate a new wage scale for ground staff, despite an agreement to do so in the last collective agreement;
• with regard to telework, management wants to impose an internal regulation that is deterioration of the legal provisions on co-determination.

In view of these differences, and taking into account the decision not to mediate, the OGBL and LCGB have received a mandate from their members to organize a strike at Cargolux from 14 September. A press conference has been scheduled for 10:30 a.m. on that day in front of the entrance to the Cargolux headquarters.

To resolve this social conflict, the OGBL and LCGB call on the Cargolux management to assume its responsibilities towards the company’s employees. For the unions, the collective agreement must guarantee attractive wages and thus ensure the attractiveness of Cargolux.

OGBL and LCGB press release,
September 13, 2023

The arrival of Wizz Air in Luxembourg this summer is very bad news from a social point of view. This low-cost airline is notorious for its openly anti-union and anti-social practices. It should also be noted that this Hungarian airline will not create any jobs or hire any employees in the Grand Duchy, nor will it pay any social security contributions or taxes here.

Not only will Wizz Air not contribute to Luxembourg’s social system, but it will even jeopardize it with a particularly aggressive pricing policy that could prove socially disastrous for employees in the sector. Its extremely low sales prices mean that Wizz Air will systematically fly at a loss – in fact, its official sales prices are even lower than the airport taxes it has to pay for each flight.

It is also worth noting that Wizz Air’s CEO has been known to boast that his company is “a company without unions”. The same Joszef Varadi is also said to have encouraged his company’s pilots to work beyond tolerable fatigue limits. Remember, these limits are supposed to ensure the safety of passengers and crew. In Romania, the company was even taken to court for discrimination after firing employees for joining a union.

Trade unions strongly condemn these harmful practices and are concerned by the arrival of such a company at Luxembourg airport.

It is high time to put an end to social dumping practices. After this year’s national elections, European elections will be held in 2024. In this context, the arrival of Wizz Air is already an opportunity for political parties to take a stand in favour of strong social systems and the protection of employees, by advocating a change of course that turns its back on the liberalization policy in the European aviation sector.

Press release from OGBL, LCGB and ALPL,
July 21, 2023