Cargolux says it will enter into a conciliation process on its collective work agreement and has rebuffed suggestions that it plans to move a major part of its operation outside Luxembourg.

The European all-cargo carrier issued a statement following the apparent breakdown in negotiations with the labour unions yesterday (20 January).

Cargolux complained that a job security agreement for all employees in Luxembourg and further assurances on the level of activity at its home base “were rebuffed by the unions.”

The airline said that it planned “to protect and further strengthen its operations and would keep Findel airport as a global airfreight hub. However, that requires “a realistic and sustainable cost base which will allow it to compete effectively…in an increasingly competitive industry.”

Cargolux said it would need better productivity under any future collective work agreement.

While its operations in Italy and potential ancillary activities in China would improve the airline’s competitiveness and diversify its operations, “none of these activities are aimed at shifting production to the detriment of its Luxembourg hub.”

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