Lufthansa faces strike threat as pilots vote for industrial action over pensions
FRANKFURT: Germany's Lufthansa could face a strike at its main airline after pilots' union VC said on Tuesday (Sep 30) its members had voted in favour of industrial action in a dispute over pensions.
The vote comes just a day after the airline group held its capital markets day, presenting a plan to boost efficiency and cut costs. VC, or Vereinigung Cockpit, said in a statement that a vast majority of members supported a strike, but no timeline was given for possible walkouts.
UNION PUSHES FOR STRONGER PENSIONS
The union has been pressing Lufthansa to agree to a more generous pension package. Lufthansa has resisted, warning it may shift more jobs to cheaper subsidiaries Discover and City Airlines if demands increase labour costs.
"The focus must continue to be on answers that are compatible with the economic performance of Lufthansa Classic," said Michael Niggemann, Lufthansa’s head of human resources.
He added that the company’s goal in negotiations was to safeguard the long-term viability of its core Lufthansa Classic brand.
JOB CUTS AND PROFIT TARGETS
The potential strike adds to Lufthansa’s labour challenges as it seeks to cut costs and expand growth. On Monday, the airline announced plans to eliminate 4,000 administrative jobs by 2030 and set higher profitability targets.
Analysts, however, expressed doubts that Lufthansa could meet its ambition of achieving an 8 to 10 per cent operating margin between 2028 and 2030.
"New aircraft delays, labour union pushback and an underestimation of potential offsetting cost headwinds all pose risks to the plan," Deutsche Bank said in a note following the capital markets day in Munich.
Other analysts told Reuters that Lufthansa should concentrate more on near-term financial stability in 2025 rather than long-term targets that could shift over time.
