Lufthansa welcomes outcome of UFO referendum on new CLAs

Deutsche Lufthansa AG welcomed the approval by the members of the Unabhängige Flugbegleiter Organisation (UFO), the union of the company’s cabin crew staff, of the terms and conditions of the proposed new collective labor agreements (CLAs) for Lufthansa’s cabin personnel. The approval promises longer-term industrial peace on the CLA front. The various changes under the new CLAs to the remuneration structure and the retirement and transitional provisions for the Lufthansa cabin crew corps will provide the Lufthansa Group with annual savings in the mid-double-digit-million-euro region; and the terms of the new accords will also remove a high triple-digit-million-euro amount from the Lufthansa Group’s occupational pension commitments. The vast majority of this will impact on group results for the current year, where it will have a correspondingly positive effect on the annual EBIT (but not on the adjusted EBIT) result. In return for these cost concessions, Lufthansa’s cabin personnel will enjoy increases in their remuneration and guaranteed further employment until 2021. They will also be able to use any transitional provisions which they elect not to benefit from to increase their later occupational pension entitlements. Lufthansa’s cabin personnel approved the new CLA package by a sizeable majority.