Agreement signed at Cargolux SA

Download article in original language : LU9801139NFR.DOC

A new three-year collective agreement was signed at Cargolux SA, the Luxembourg air freight company, in December 1997. It contains substantial improvements, including the restoration of certain benefits lost in 1995.

Cargolux Airlines International SA, which is in the air freight business, has a workforce of 890 employees and is Luxembourg's 16th largest employer. Negotiations between the social partners at the company have frequently come to nothing, and subsequent collective agreements have required the intervention of the National Conciliation Office.

The news of an amicable settlement, formally approved on 16 December 1997 following more than a year's negotiations between management the OGB-L and FEP trade unions, has been greeted with relief by the parties concerned. It is particularly welcome as, unlike previous accords, the new agreement, which runs (retrospectively) from 1 January 1997 to 31 December 1999, contains substantial improvements for all employees.

Some 90% of the workforce voted to accept the outcome of the negotiations. Details of the settlement include:

• reintroduction of a number of pay increments withdrawn in 1995 due to the uncertain economic situation. Pay salaries thereby rise by approximately 3%;

• a bonus amounting to 60% of one month's pay, paid when the collective agreement is signed;

• improvements to the profit-sharing scheme (with a maximum of two months' pay);

• the setting up of a joint committee to look into improving productivity and flexibility; and

• a commitment by both sides to resume discussions on the complementary pension scheme and the problem caused by pilots automatically losing their licences at the age of 60.