Cargolux attacks social dialog model and appeals ONC decision

After a record net profit of $768.7 million in 2020 and $1.3 billion in 2021, Cargolux has just announced another record year with a net profit of $1.6 billion.

Cargolux management categorically refuses any improvement in wages, any lasting improvement in working conditions and any adequate job security for all employees after 15 sessions of negotiations for a new collective agreement for Cargolux’s more than 1,800 employees, which have been going on for 10 months.

Faced with the Cargolux management’s unwillingness to enter into real and serious negotiations, the OGBL and LCGB filed a complaint with the National Conciliation Service (ONC) on February 17. At the first meeting of the ONC, Cargolux management confirmed its unwillingness by requesting that the dispute be declared inadmissible. However, after analysis and consideration, the ONC rejected Cargolux’s request and confirmed the legitimacy of the unions’ submission.

In preparation for the next conciliation meeting, three new bargaining sessions were scheduled to discuss the priority issues communicated by the syndicates at the request of the ONC. At the first of these meetings, Cargolux management informed the unions that it would appeal to the Administrative Court against the ONC’s decision.

Although Cargolux had already been denied the same request by the ONC during the last collective agreement renewal negotiations, history is now repeating itself before the ONC. This new action by Cargolux is unprecedented in Luxembourg, as no employer has ever challenged an ONC decision before the Administrative Court.

Cargolux’s action challenges the legitimacy of the ONC and is aimed solely at destroying the Luxembourg model of social dialogue. This attack on the ONC and the Luxembourg model of social dialogue is unacceptable in view of Cargolux’s shareholding structure. It is also detrimental to the ongoing negotiations and represents a totally irresponsible escalation of the collective dispute on the part of Cargolux management. If negotiations fail, industrial action is inevitable!

Over the past three years, which have been marked by the pandemic, the employees have made great efforts and shown unwavering commitment, enabling Cargolux to meet the various challenges and achieve record profits for three consecutive years. Instead of properly rewarding its employees for their exemplary work, Cargolux management continues to show contempt for its employees.

The OGBL and LCGB remain committed to finding fair and equitable solutions in these negotiations. They therefore once again call on management to live up to its responsibilities to its employees, the company and Luxembourg as a business location by negotiating a forward-looking collective agreement for all employees.

Press release dated April 26