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Lufthansa faces potential pilot strike as pension negotiations fail

Lufthansa pilots hold second strike in one week
An employee prepares a Lufthansa plane for take-off at the Franz-Josef-Strauss airport in Munich, southern Germany, on September 2, 2022, as pilots called for a strike affecting the Lufthansa passenger airline and Lufthansa Cargo after pay negotiations with the German airline collapsed. - German airline group Lufthansa said it is cancelling "almost all" of its flights to and from its main German hubs in Munich and Frankfurt on September 2, 2022 after pilots called a strike. (Photo by Christof STACHE / AFP)

Lufthansa pilots are edging closer to a strike after negotiations over their pension plans stalled, the pilots’ union Vereinigung Cockpit said.

The union has declared recent talks on occupational retirement provisions unsuccessful and requested a strike ballot from its governing body.

The timing of any strike remains unclear. VC last staged a one-day walkout in 2022.

About 4,800 pilots are affected by the dispute, which centers on employer contributions and transitional benefits.

VC says Lufthansa has failed to make a substantive offer, while the airline said it had no details on the breakdown of talks.

The tensions date back to a 2017 agreement that shifted pension guarantees from total amounts to employer contributions, transferring investment risk to employees.

Transitional benefits eligibility was also raised by two years to age 60.

Pension returns have since fallen short of expectations.

The issue is compounded by Lufthansa Group’s broader labor strategy.

CEO Carsten Spohr has launched lower-cost carriers such as City Airlines and Discover, with labour agreements reached with the Verdi union, leaving VC and cabin crew union Ufo sidelined.

Both unions are resisting the transfer of aircraft and jobs to these newer carriers.

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