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Collective bargaining fails in Cargolux dispute

June 10 - OGBL and LCGB, the two unions representing staff at Cargolux, have decided to enter the National Conciliation Office rather than accept an offer tabled by the airline last Friday at a meeting with the chairman of the Cargolux Board of Directors

In its offer, the company says it had agreed to re-instate the collective work agreement (CWA) until December 31, 2014 in return for the unions agreeing to a USD12.5 million reduction in employee costs for the airline's 2014 financial year.

The airline said that that productivity and efficiency improvements would be the first priority in reaching this target; and that only in the event of the target not being achieved through these measures would other employee cost savings measures be effected, with the unions given the first opportunity of identifying which additional measures would be introduced.

The airline also said that the agreement would have also seen management agree to reimburse, up to USD6.25 million, of any savings achieved through the implementation of other employee cost savings, provided the financial targets of the company were achieved for its 2014 financial year.

Previously the two unions has demanded full repayment of the USD12.5 million personnel cost savings should the airline return to profit during 2014.

Many see the entry into the conciliation process as the first step towards full-scale industrial action.


www.cargolux.com

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