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Lufthansa Group Balance 2014 EN

Germanwings, furthermore, solutions that are compatible with social policy were found for the employees. Negotiations with cockpit staff The negotiations for collective bargaining agreements with cockpit personnel employed by ­Lufthansa German Airlines, Germanwings, and ­Lufthansa Cargo have resumed with intensity. The discussions proved difficult because of the complexity of the issues and the wide disparity of positions. The dispute came to a head with the three-day strike by cockpit personnel in April 2014. ­Lufthansa and the union Vereinigung Cockpit subse- quently reached a constructive agreement on the next steps towards resolving the issues of pay and carry-over benefits. Since then the negotiations have continued. Swiss was engaged in trilateral negotiations with the cockpit unions Aeropers and IPG for an amalgamation of the two cockpit corps. The talks were brought to a successful con- clusion. The agreement submitted to the union members for a vote was rejected in early 2014 by the long-haul pilots (Aeropers), who were being asked at the same time to increase their productivity. Negotiations are ongoing for collective bargaining agreements with cabin and ground personnel. Austrian Airlines significantly overhauled its collective bargaining agreement in 2013 and adapted it to future requirements. An agree- ment was reached with unions and employ- ees on the largest package of reforms for ground crews to date. It contains radical changes in salary ranges, entry-level wages, pay increases, company pensions, anniver- sary bonuses, and severance pay. In exchange, employees will have a share in future profits. The employees approved the new provision with an overwhelming majority of roughly 75%. Ú Active pay and social policy abroad Internationalization and globalization offer a broad range of opportunities for the Group’s business and personnel processes. As a company with international operations, ­Lufthansa’s pay and social policies are guided by conditions in the various countries. The focus is on long-term definition of the condi- tions of employment, which depend on the needs of the employees, operational require- ments, and the local labor market—with the inclusion of compensation rules, working conditions, and pension schemes. ­Lufthansa defines these agreements in cooperation with internal labor committees and employees. The company is a party to collective wage bar- gaining with employees in 24 countries. In all countries where ­Lufthansa acts unilaterally, the company uses benchmarks and macro- economic data such as inflation figures to review salaries at least once a year on the basis of market and competitiveness criteria. In countries with very high rates of inflation, this assessment is performed more often, given the circumstances, and usually leads to pay increases. In this way the ­Lufthansa Group offers continual review and adjustment of working conditions for its locally employed staff. As a signatory to the UN Global Compact, ­Lufthansa has documented its support for freedom of association and the right to collec- tive bargaining for all of its employees world- wide. Employees in any country where ­Lufthansa companies are active are free to lawfully organize themselves and become involved in defining their working conditions (see page 27). Sustainability Report Balance // Issue 2014 // Lufthansa Group // 91

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