After the union and management failed to reach an agreement on salary increases, employees of the Luxembourg International Cargo Air Cargolux launched a strike action on Thursday local time and will continue indefinitely. According to the latest news, the strike of Luxembourg Cargo, Europe's largest cargo carrier, has entered its second day. The situation of the cargo company continues to deteriorate, and its entire global fleet is still grounded.
The strike, launched on Thursday by the Luxembourg Confederation of Christian Trade Unions (LCGB) and the Independent Luxembourg Confederation of Trade Unions (OGBL), has attracted a large number of employees. It is reported that more than 700 workers gathered outside the company's headquarters on Thursday afternoon. The LCGB representative stressed that the workers were determined to strike until a satisfactory solution was found.
Friday, Luxembourg Cargo Cargolux's entire fleet of 30 freighters ceased operations. At present, the situation is at an impasse. The strike, the first in the cargo airline's 50-year history, has cost the company a huge $25000 an hour per plane.
In an update gave to customers early Friday, Luxembourg Cargo outlined how its flights, many of which have yet to be identified, were affected while others were confirmed grounded. Meanwhile, a flight-tracking website FlightRadar24 Friday morning showed only one Cargolux aircraft operating in the air (a 747-400 freighter flying from Hong Kong to Anchorage).
Later in the day, however, the tracking website showed four flights in operation. There are also currently no Cargolux Italia aircraft operating flights. The airline has a total of 30 Boeing 747 freighters.
Paul de Araujo, the LCGB union, said in an interview on Friday that pilots, ground crew and technicians were actively involved and expressed satisfaction with the ongoing strike. At the same time, it said that on Friday, the planes of Luxembourg Cargo Airlines were grounded worldwide, "including Luxembourg City, Baku, Bahrain, Dubai, Hong Kong, Anchorage, Chicago, Houston and Mexico City".
Indefinite strike?
at present, neither management nor the union has publicly indicated that any negotiations are imminent. The strike by Cargolux employees of Luxembourg Cargo Airlines is the result of failed negotiations on a new collective agreement.
The union announced that the current strike would be indefinite, putting pressure on the Luxembourg-based trucking company's leadership.
at the same time, the employees of Luxembourg Cargo seem to be resonating with the demands. On Thursday, the LCGB union shared the position of the Luxembourg Airline Pilots Association (ALPL) on the matter. At a news conference, the pilot of the Luxembourg flag carrier said it "fully supports" the "legal and legitimate" demands of the cargo company's employees. They also pointed to "significant problems" within Luxembourg Cargo ". Considering this situation, ALPL decided to convene a committee meeting to determine the "necessary strike action".
The government will not intervene in labor disputes: although only Transport Minister franois Bausch chose to comment on the matter, the recent social conflict in Luxembourg Cargo has entered the discussion topic of the government committee. In line with his previous stance, Bausch reiterated the government's position that it would not be directly involved in ongoing labor disputes. Rather, the role of the Government is to facilitate dialogue among the parties concerned. Even if the Luxembourg government is a shareholder in the cargo airline, the government will not directly intervene in such matters. But personally hope that both sides can work together to find a solution.
What are the strike reasons?
the fundamental disagreement between employers and unions is over pay, that is, the structure of the planned pay increase. While the Cargolux plans a five percent pay rise over five years, the union is demanding a six percent increase over four years.
Cargolux's chief executive, Richard Forson, meanwhile, said the union's demands were "unreasonable". Rebutting the union's position, Forson and Cargolux stressed that last year the individual earnings of employees were around 85000 euros, a figure that would rise to 200000 euros in three years. This is part of the company's profit-sharing incentive.
However, the unions do not share this view, arguing that bonuses are not a fixed part of the wage structure and therefore cannot be compared with their demands. Instead, they stress that between 2003 and 2019, wages were essentially stagnant. In addition, Paul de Araujo of the LCGB union noted that upcoming investments make future bonuses uncertain.
But bonuses are not the only source of contention between employers and unions. Wage indexation is also under discussion. Unions are seeking assurances that wage indexation will be paid for even if any future administration makes changes to the scheme. This may be a prescient question, as a large number of indexations have proved costly for employers, and some have been deliberately delayed to soften the blow. In some respects, this raises questions about the continued viability of the index system. Forson responded that the company will protect employees if the indexation system is limited, but noted that this will not extend to canceled or postponed indexation.
Source: Ningbo Shipping