Toronto Star

Lufthansa pilots extend strike, 2,000 flights nixed

Long-running labour dispute revolves around pay as well as impact of low-cost carrier

- RICHARD WEISS AND KARIN MATUSSEK BLOOMBERG

Strikes at Deutsche Lufthansa will wipe out thousands of flights after a failed bid to have a pilot walkout over pay declared illegal led a union to extend the action by two more days.

The long-running spat reached new levels of bitterness after the Vereinigun­g Cockpit union defeated an applicatio­n to have the strike blocked late Tuesday, and then upped the ante by lengthenin­g the action. Lufthansa said the “incomprehe­nsible” step would inflict “extensive damage” on its business and hit back by reviving a legal claim against the labour group dating to 2014.

Europe’s third-biggest airline scrapped 912 flights scheduled for Thursday on top of at least 876 lost on Wednesday, disrupting travel for a total of 215,000 people, before Vereinigun­g Cockpit announced a further walkout Friday affecting short-haul routes.

The first two days of walkouts affect both short- and long-haul services operated by Lufthansa’s main brand, eliminatin­g about 40 per cent of the usual schedule. Premium flights such as Beijing-Frankfurt, Los Angeles-Munich and 10 out of 12 services from Frankfurt to London Heathrow are among those scrapped.

While Lufthansa said it’s ready to resume negotiatio­ns at any time and repeated an offer of outside arbitratio­n, Vereinigun­g Cockpit is unwilling to return to talks without an improved pay proposal. The union is seeking a 20-per-cent raise for the period spanning 2012 through 2017, or 3.7 per cent a year. Lufthansa has offered 2.5 per cent, or 0.38 per cent annually, through 2018.

About 5,400 Lufthansa pilots, around half the total, are covered by a collective labour agreement and therefore potentiall­y on strike, excluding those at the carrier’s cargo unit. Flights at the group’s Swiss and Austrian divisions and the Eurowings discount brand are also operating normally.

The action is the latest in more than two years of clashes over pay, working conditions and Lufthansa’s moves to turn Eurowings into a fully fledged low-cost carrier.

The company’s recourse to legal ac- tion proved especially incendiary given that a similar strategy undermined the last pilot strike in 2015, with the walkout, which was linked to the Eurowings transforma­tion, rejected as an illegal effort to influence corporate strategy.

“What Lufthansa is doing is trying to censor the wage demands of the union,” Vereinigun­g Cockpit lawyer Martell Rotermundt told the Frankfurt labour court. Thomas Ubber, representi­ng Lufthansa, said the air- line could not just “pull a new offer out of the hat” and that the labour group’s demands involved wage discrimina­tion in favour of older pilots.

Judge Martin Becker said the labour court is “not allowed to make a judgment call on the collective bargaining process, or a call if a wage demand is good or bad,” and ruled that the strike could go ahead. A subsequent appeal by Lufthansa to a higher court was dismissed.

Lufthansa said customers will be able to adjust bookings free of charge during the strike. The group’s operations will have suffered three straight days of disruption and more than 1,850 lost services after a walkout by Eurowings cabin crew called by the Ver.di union led to the scrapping of at least 64 flights Tuesday at the unit’s Dusseldorf and Hamburg bases.

Europe’s third-biggest airline said later it has revived a 60-million-euro ($85 million Canadian) damages claim against Vereinigun­g Cockpit related to a walkout by pilots in April 2014. The carrier had previously filed a lawsuit before requesting that it be put on hold pending the outcome of negotiatio­ns.

Spokespers­on Helmut Tolksdorf said the carrier has yet to decide whether to seek compensati­on for the 2015 action that was declared illegal, or if it will further pursue its case against this week’s strike.

Strikes forced Lufthansa to cancel more than 16,000 flights in 2014 and 2015, burdening operating profit by $650 million.

Lufthansa shares closed 0.4-percent higher at $18.20 in Frankfurt Wednesday. They’ve declined 12 per cent so far this year. With files from Nicholas Brautlecht and James Regan

 ?? RALPH ORLOWSKI/REUTERS ?? About 40 per cent of Lufthansa’s schedule has been affected by walkouts.
RALPH ORLOWSKI/REUTERS About 40 per cent of Lufthansa’s schedule has been affected by walkouts.

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