Freight Transport

Lufthansa Cargo has signed a new agreement, effective until February 28th, 2011, the airline is reducing the short-time working rate for its ground staff in Germany to 20%

This measure will enable the company to continue to adjust its staffing capacities flexibly to declining demand in the air cargo business

Under the terms of the new agreement, all ground staff (including non-pay-scale employees, who are not bound by the collective agreement) will in future work 20% rather than 25% fewer hours

Executive Board members and senior executives will continue to take a voluntary pay cut while the measure remains in force

Peter Gerber, Lufthansa Cargo's executive board member responsible for finance & human resources, points out that the crisis is not yet over "The latest positive developments in our traffic figures still reflect a significant drop in cargo volume compared with the pre-crisis period It will take still some time to return to the level we achieved in 2007 or 2008"

Gerber said that, overall, the global airfreight industry has lost four years of growth due to the crisis

"Lufthansa Cargo will continue to implement short-time working flexibly within the terms of the new company agreement in cooperation with the Works Council However, the extension of the agreement does not automatically mean that Lufthansa Cargo will implement short-time working arrangements until 28 February 2011 Rather we can, at any time, end short-time working before that date But only on condition that demand in the air cargo market continues to grow sharply," said Gerber

Gerber added that Lufthansa Cargo is cautiously optimistic that it will be able to further reduce short-time working arrangements or, if there are further improvements, phase out short-time completely during the course of this year

About 2,600 ground staff employed by Lufthansa Cargo in Germany have been on short-time working since March 1st, 2009, in terms of a corresponding agreement that expires at the end of this month