Lufthansa cabin crew to strike after pay talks break down

http://www.guardian.co.uk/business/2012/aug/28/lufthansa-cabin-crew-strike-flight-disruption

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Passengers of Germany's leading airline Lufthansa face hundreds of possible flight cancellations after cabin crew representatives outlined strike plans for the next few weeks following the collapse of last-ditch pay talks.

The UFO union, which represents 18,000 Lufthansa flight attendants, said on Tuesday it would give only a few hours' notice for most strikes, raising the threat of flight disruption.

The head of UFO, Nicoley Baublies, said the first strike could come as early as Wednesday and focus on selected airports. "We could hold the strike for five or six hours at a time at selected airports," he said.

The dispute is the latest for Lufthansa as it grapples with rising costs, tough competition and economic uncertainties.

Costs of a drawn-out stoppage could quickly mount for the airline, which said in 2010 a four-day strike by pilots would cost it €25m (£19.8m) a day in lost revenue.

"The cost could reach millions on a day with a lot of traffic," Lufthansa board member Peter Gerber told reporters on Tuesday. He said Lufthansa had offered a package equating to a pay rise of about 3.5%.

"Given the difficult competitive environment we demand all staff make their contribution," he said, pointing to the need to slow down pay rises and extend working hours.

He said Lufthansa was prepared to stop hiring temporary workers but not indefinitely as demanded by UFO.

The union – which wants a 5% pay rise after a three-year pay freeze – last week called on members to start preparing for a strike so it could take swift action.

Lufthansa, which typically operates around 1,850 flights a day, said it still wanted to negotiate a deal with the union, which has also called for a better profit-sharing scheme and guarantees that jobs will not be outsourced or given to temporary workers.

It said it would give details of its contingency plans only when the union gave strike times, and would do everything possible to minimise disruption.

The move comes as Lufthansa cuts 3,500 jobs – about 3% of its global workforce of 117,000 – and freezes investment, aiming to boost earnings which had been squeezed by soaring fuel prices and competition from low-cost and Middle East carriers.