In the wage dispute at the AUA, the works council initiates the next level of escalation. Before the 36-hour strike even started, the next company meeting was announced for April 4. For negotiating AUA board member Francesco Sciortino, it was a “slap in the face” and another loss of a million dollars.
As reported, there will be a 36-hour work stoppage at Lufthansa subsidiary AUA from midnight on Thursday to noon on Friday. The airline estimates the financial damage at around 15 million euros. About 50,000 passengers and 400 flights are affected. In addition, a total of around nine million euros in company meetings have been announced at short notice in recent weeks. In total, the damage amounts to no less than 24 million euros.
“Slap in the Face”
Now the works council is adding one more thing. Even before the start of the longest strike in domestic aviation, another AUA working meeting was announced on Thursday, April 4. For the responsible AUA board member Francesco Sciortino, this is a ‘slap in the face’ after seventeen rounds of negotiations so far. The airline will likely have to cancel hundreds of flights again and rebook thousands of passengers.
The manager expects damage of five to ten million euros. “We are very sorry for our passengers,” Sciortino said of the cancellations. But sometimes you don’t know what else you can do. The airline’s latest offer has already crossed the financial pain threshold. The union, on the other hand, continues to demand an increase of no less than 40 percent, which, according to employee representatives, would reach Lufthansa levels.
For AUA chief negotiator Sciortino, however, it is not so relevant what Lufthansa staff earn, but rather what they can afford. For example, the German market differs from Austria in terms of purchasing power. And the share of low-cost airlines is also higher in Austria. Moreover, many services at AUA are free or better than at Lufthansa. Consider, for example, cleaning uniforms, free crew meals, less standby, fewer short-term schedule changes, etc.
With a wage increase of 40 percent, 60 percent of the routes are no longer profitable
Moreover, if the AUA were to increase by 40 percent, it would suddenly become uncompetitive and six out of ten routes would no longer be profitable, the AUA manager said. Low-cost airlines such as Ryanair already put a lot of pressure on the airline.
The board hopes for common sense and calls for a ‘portable’ solution
Now the airline wants to manage the 36-hour strike as best as possible for its customers. Then one hopes that that reason will reach the other person. Sciortino is convinced that a solution will eventually be found. However, it must be a portable solution.
Sciortino, who was present at all seventeen rounds of talks, is somewhat disappointed with Vida unionist Daniel Liebhart (he is responsible for the aviation sector) and Vida chairman Roman Hebenstreit. Neither took part in a single negotiation and would now stand up and make big demands. Moreover, the fact that instead of talking to each other they are now announcing a new works meeting shows that the union and the works council have little solution orientation. But maybe there will still be an Easter miracle.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
