The trade union representing Lufthansa pilots has agreed to a 45% pay cut, to ensure job security.
The pay-cut will affect a significant number of the 10,000 pilots flying for the Lufthansa Group.
The pay cuts will amount to €350 million ($383 million USD) which the union hopes will make a significant contribution to Lufthansa’s survival.
“The pilots of Lufthansa…are committed to their responsibility. Therefore, in addition to a short-term additional reduction in short-time work benefits, we have offered the Group Management Board a significant reduction in wage costs until June 30, 2022. For the individual pilot, this means a salary that is up to 45% lower than in previous years”
Markus Wahl, President, Vereinigung Cockpit
The union has asked that in return Lufthansa leadership remains “committed” to their employees and that they work through the crisis together, according to a press release.
The pay-cut will affect employees from Lufthansa, Lufthansa Cargo, Lufthansa Aviation Training and low-cost subsidiary Germanwings.
The union also noted that Lufthansa pilots had previously agreed to a 30% pay-cut in 1992, to help the airline through a financial crisis.
“We have always said that, as top-level employees, we are committed to our special responsibility, in good times and in bad, even if this means painful cuts. Here is the proof. We hope that together with the Lufthansa management we can bring the company back to its old strength. It is important that the jobs are preserved and that protection”
Markus Wahl, President, Vereinigung Cockpit
SamChui.com has contacted Lufthansa for comment.
Article Sources: Reuters, Vereinigung Cockpit, and FlightGlobal. Feature Image: Catarina Madureira.
LOL, I guess after the union members at the Twinky factory years ago didnt accept an 8% pay cut to save their jobs/entire income and the company simply chose to close, leaving them completely out of work…Unions are wising up. Companies don’t want to close. I don’t know one single business person that would opt to shut down over whatever the usually temporary economic set back is. Unions usually tie the balls of executives to give in to their demands. I guess the airline union realized that they could either take the cut, weather through this and save both the airline and their job or the obvious…stick to their guns and be out of work. The only people that get hurt in those situations are usually the workers. The executives have millions in severance pay and options to cash in on after the company goes belly up and will simply take on other executove posts with other companies or simply retire with their millions…what about thee little guy? Come on people wise up…companies are not always out to screw you, but if given the choice of being taken to the cleaners or simply closing shop, the wise business person knows the answer. And this goes for Government bodies that want to tax the pants off of businesses also.