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Strike action threat at Cargolux

May 23 - A number of media outlets have reported that staff at Cargolux Airlines International have encouraged their unions to enter into a conciliation process - the first step towards full-scale industrial action.

The LCGB and OGBL trade unions have both expressed concerns relating to collective work agreement (CWA) negotiations.

Cargolux has reiterated its agreement with the unions regarding the following key elements:

Cargolux has outlined a personnel-related cost saving target of USD12.5 million for the financial year 2014. Cargolux has explained that in its latest offer, it reduced its original staff cost savings target down from USD37 million (for FY2013 and FY2014) to USD12.5 million for FY2014 only. It will recover the shortfall from other areas of the business.

Cargolux claims that it will prioritise efficiency and productivity improvements in order to achieve the USD12.5 million cost saving.

A statement from the carrier reads: "Cargolux's latest response to unions reflects the company's preparedness and determination to uphold social dialogue by offering a fair and equitable solution that will enable the social partners to swiftly work towards securing the long term financial sustainability of Cargolux."

The LCGB and OGBL trade unions have urged for a full repayment of the USD12.5 million personnel cost savings should the airline return to profit during 2014. Cargolux argues that such a reimbursement ignores the long-term financial sustainability of the company, but it will consider repaying a proportion of the sum should it meet its FY2014 financial goals.

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