Cargolux and LGGB union reach agreement on CWA

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Cargolux International Airlines says it has finally come to a deal with the OGB-L, LCGB and CLSC unions over the collective work agreement (CWA).

Last week, negotiations collapsed with the LCGB union and both blamed each other for the failed talks. This means there will be no strike action, which the pilots union had threatened to take.

The carrier explains it had repeated meetings in the last 24 hours, and an amicable agreement on the new CWA for the staff of Cargolux was “finally achieved between all concerned parties; the Cargolux management and OGB-L, CLSC and LCGB”.

The new CWA will be valid for three years.

Cargolux president and chief executive officer, Dirk Reich says: “I am extremely pleased to have come to a common understanding with our social partners.

“With the agreement, we achieve a significant improvement in the flexibility and economic efficiency of Cargolux and send a strong signal for the job security at Cargolux and increased competitiveness of Luxembourg as a leading logistic hub in Europe.”

Cargolux and the union previously had said they reached an agreement in principle on 1 December, which included new pilots and aircraft in Luxembourg and implementing the Luxembourg – Zhengzhou (China) dual hub.

But the union said Cargolux refused to implement essential points, and expanded its Italian subsidiary, Cargolux Italia during the collecting bargaining period.

On a different issue, Cargolux today says it welcomes a decision by the European Union General Court, annulling articles one to five of the European Commission’s 2010 decision in the alleged airfreight cartel.

The decision means that a 79.9 million euro fine which was previously levied on Cargolux has also been annulled.

Cargolux says iy will conduct a detailed analysis of the court’s decision.

In November 2010, Cargolux and a number of other airlines were fined by the Commission for their participation in an alleged cartel in airfreight, following investigations initiated by the Commission on 14 February 2006.