Attractive wages for an attractive company!

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