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Balance 2015 ENG - Employment policy based on partnership

It is tried-and-tested Company policy to settle clashes of interests between Com- pany management and the bodies repre- senting employees in a transparent man- ner. A fair approach to coexistence in all areas creates the balance needed to advance the ­Lufthansa Group’s position in the market. The growing plurality of opin- ions and opinion leaderships, much like developments in society as a whole, is increasingly a challenge for all parties concerned. The guiding principles for joint efforts are flexibility and responsiveness. Partnership in collective agreements ­Lufthansa employs its staff under condi- tions that guarantee them social and mate- rial security not only during but also after their working years. These are established on the basis of collective agreements that the Company negotiates with its union partners Vereinte Dienstleistungsgewerk- schaft (ver.di), Vereinigung Cockpit (VC), and Unabhängige Flugbegleiter Organisa- tion e.V. (UFO). The goal is to treat all employee groups within the Company fairly and justly – a desideratum that the multipli- city of unions within the Company presents with an array of increasingly challenging conditions. You can find the latest informa- tion on the ongoing collective bargaining negotiations at 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 coun- tries. The focus is on long-term definition of the conditions of employment, which depend on the needs of the employees, operational requirements, and the local labor market – with the inclusion of com- pensation 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 bargaining with employees in about 25 countries. In all countries where ­Lufthansa acts unilaterally, the Company uses bench- marks and macroeconomic 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 circum- stances, 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 collective bargaining for all of its employees worldwide. Employees in any country where ­Lufthansa companies are active are free to lawfully organize themselves and become involved in defining their working conditions. The ­Lufthansa Group’s success depends greatly on the ideas, enthusiasm and commitment of its employees. Therefore, the aviation company attaches the greatest importance to providing its employees with an attractive work environment and appropriate salaries. Likewise, it is an established tradition always to balance the economic interests of the Company with the expecta- tions and needs of its employees. Employment policy based on partnership Creating viable conditions for the future  80 // Social Responsibility