Union shutdown could cripple Lufthansa subsidiary
Strikes threatened on Lufthansa holiday airline Discover due to dispute between three unions over wage representation for 1900 employees. The Cockpit Association (VC) for pilots and UFO for flight attendants want to make a collective agreement concluded by their presumed smaller competitor Verdi last week obsolete. The established unions in the company have called their members at Discover to vote on working disputes to enforce their own wage agreements. The basic conflict at the small holiday airline could quickly spread to other companies in the group. Here are the key questions and answers:
When and on which flights do strikes threaten?
First, the outcome of the votes must be awaited, which will be counted on 21 August. If the members agree, strikes on flights operated by Discover Airlines are possible immediately. The company operates 27 aircraft from Munich and Frankfurt to holiday destinations in Europe and overseas. The unions are not currently disclosing details for tactical reasons. However, it is clear that they want to coordinate their actions. Unlimited strikes and solidarity strikes, for example at the core company of the group, are not ruled out by the unions.
What are the employees striking for?
The demands of VC and UFO differ only slightly from what Verdi has agreed to, according to their own statements. This is partly due to Verdi copying the already negotiated contracts of its competitors, says UFO wage expert Harry Jaeger. The Verdi wage agreement was concluded within a few days by an ad hoc convened wage commission. "Here, a non-legitimized employee representation was appointed by management." In this specific case, it is less about the different contents than about the question of with whom a wage agreement is concluded, says VC chairman Andreas Pinheiro. A "sustainable" wage agreement can only be concluded with a union that will also be powerful enough in the future to conclude independent contracts.
What has Verdi agreed to?
In addition to regular wage increases for both professions of between 16 and 38 percent by the end of 2027, the agreement includes numerous regulations on allowances and working time regulations, company pension schemes or assistance in the event of loss of flying license. For its own members, Verdi has stipulated extended notice periods and an additional half month's salary.
What does the company say about this?
Even after the protests, the company sees no reason to act. "We have a social partner in Verdi and a concluded wage agreement. Our focus is now on implementing the wage agreement and making it effective," explains a spokesman. Discover CEO Bernd Bauer had described the conclusion as an important milestone, for which the economic limits had been reached.
Why isn't it simply counted which union is stronger?
There are currently no competing wage agreements. Therefore, it cannot be notarily determined according to the Wage Unity Act which union has more members in the company and would then conclude the wage agreement. A voluntary count is not the responsibility of the employer, as can be heard at Lufthansa. Ultimately, the unions would have to voluntarily initiate a joint procedure. However, this is not expected, as none of the three involved unions provides information on its own organizational strength.
What are the chances that the employees will actually vote for a strike?
The outcome of the votes is still open. However, the unions are confident that their members will support their demands.
UFO and VC are equally optimistic about securing broad support from their members for the labor dispute. Despite three rounds of pilot strikes in the winter having no effect, both chairmen, Pinheiro and Joachim Vázquez-Bürger, say they would respect the vote even if it's rejected. It's also possible that employees may switch to Verdi to maintain their negotiated membership privileges, which include half a month's salary and extended dismissal protection in case of crisis. Verdi's chief negotiator, Marvin Reschinsky, has already reported numerous new members.
What other impacts could the conflict have?
UFO chief Vázquez-Bürger states clearly that it's about the influence of the specialist trade unions on the Lufthansa group's future strategy. The atmosphere has already deteriorated significantly. In addition to Discover, the Lufthansa group now flies City Airlines, a new, non-tariffed subsidiary for short and medium-haul flights, which is set to replace Lufthansa Cityline by 2027 and take over additional flights from the more expensive Lufthansa Classic. Lufthansa CEO Carsten Spohr is increasing cost pressure on the expensive core workforce with the cheaper subsidiaries.
How could it proceed?
Both VC and UFO fear a similar approach by Lufthansa management with City Airlines as with Discover. Verdi has already stated that it would also be available as a tariff partner for the other subsidiary. Whether the DGB union will ultimately be more manageable from the company's perspective than the specialist unions remains to be seen. Verdi has recently achieved significant wage increases through numerous warning strikes at Eurowings and the Lufthansa group's ground staff.
If the votes by Discover Airlines' employees result in agreement, as indicated by UFO and VC, they might seek to coordinate their actions with Verdi, the presumed smaller competitor mentioned in the dispute, potentially leading to strikes on Lufthansa's core company or other subsidiaries. The Verdi wage agreement, although widely considered similar to those of its competitors, has been criticized by UFO's wage expert Harry Jaeger for being concluded by a non-legitimized employee representation.
