Union: Outsourcing and social dumping at Cargolux continues

Cargolux Boeing 747-8F loading
Cargolux Boeing 747-8F loading (© Cargolux)

Cargolux continues to undermine the social model of Luxembourg, by transferring, despite previous statements to the contrary, another aircraft to its Italian subsidiary Cargolux Italia, union LCGB told.

This conduct constitutes a breach of the negotiations for a new collective work agreement as limiting the number of aircraft for Cargolux Italia, and the related impact on jobs, are part of the union demands and the ongoing conciliation procedure. The way of how Cargolux Management establishes facts and is circumnavigating the social dialogue is unacceptable, especially if considering that the LCGB has offered concessions during the negotiations.

For the LCGB this attitude is startling and incomprehensible, since the concept submitted by the union involves considerable savings that would make unnecessary any further aircraft transfer. The expansion of Cargolux Italia moreover contradicts statements, made by Mr Paul Helminger, Chairman of the Board of Directors, and Mr Dirk Reich, CEO of Cargolux, in a press conference on 23 February 2015 according to which any transfer of additional aircraft would have been suspended.

The working conditions of the pilots employed with Cargolux Italia are below the average standard in the industry. Only one of the aircraft of the Italian subsidiary is flying on routes to and from Italy, whereas the rest of the fleet is used on routes to and from Luxembourg, hence on routes which have previously been operated by Cargolux with aircraft registered in Luxembourg and Luxembourg-based crews. Thus we are clearly facing social dumping, since the Cargolux management is thereby seeking to bypass the legislation and the social standards of Luxembourg. This policy has immediate consequences for Luxembourg’s tax revenue and its social security system, for each additional aircraft transferred away from Luxembourg implies roughly an annual loss of 1 million Euros in tax receipts and social security contributions in Luxembourg.

At a time when the OECD points out that Luxembourg must diversify its economy instead of merely relying on the financial sector, Cargolux management is pursuing its relocation policy. The LCGB fears that some time only a letterbox will be left at Findel Airport.

The latest decision of the management has driven the negotiations once again into a deadlock.

It also becomes clear that management disregards all procedures and their own statements by creating facts. This raises the question of whether one can still have the necessary confidence in the present management when it comes to protecting jobs in Luxembourg. This action has further brought the social dialogue within the company to a halt.

The LCGB has contacted the National Conciliation Office (ONC) with a request to take up the conciliation process again.


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