Deutsche Lufthansa AG might face further disruption after its pilots voted for strikes if they are considered necessary to force a wage deal, a move that could unleash another wave of cancelations unless the airline’s negotiators and labor representatives can settle their differences.
The VC pilots’ union on Sunday voted overwhelmingly in favor of walkouts, meaning Lufthansa could be hit with stoppages as soon as this month.
Strikes would trigger additional cancelations on top of the 7,000 flights the company has scratched this summer due to staffing shortages.
Photo: AP
“This positive ballot does not yet necessarily lead to strike action,” the union said in an e-mailed statement. “But it is an unmistakable signal to Lufthansa to take the needs of cockpit staff seriously.”
A Lufthansa spokesperson said by e-mail that the company respects the vote result and is continuing to rely on “constructive discussions” to resolve the conflict.
Further talks with VC have been arranged, the spokesperson said, declining to specify when they will take place.
Pilot strikes at Europe’s biggest airline would add to a summer of chaos across the continent, where airports and airlines have struggled to accommodate a surge in bookings compared with the COVID-19 pandemic-induced slowdown.
Having initially avoided walkouts that have plagued rivals like Ryanair Holdings PLC, Lufthansa’s management is facing action from its various labor unions. The carrier last week canceled about 1,000 flights at its Frankfurt and Munich hubs due to industrial action by ground staff.
“We need a modern and fair, internationally competitive remuneration structure,” Marcel Groels, the VC’s chief negotiator, said on Sunday by e-mail. “In the interest of our passengers, too, Lufthansa must show a serious willingness to find solutions.”
Surging German inflation is leading workers across the economy to demand higher pay, bringing the threat of strikes in several sectors. Lufthansa’s pilots are demanding wage increases to help offset the near double-digit rise in consumer prices.
After surviving a pandemic that pushed the carrier to the brink of insolvency, Lufthansa faces a swell of anger from employees who say they have borne the brunt of drastic cost cuts that they say put Lufthansa’s branding as a premium carrier at risk.
Chief executive officer Carsten Spohr has pledged to boost the airline’s earnings margin to a minimum of 8 percent by 2024, a move he said was needed to reduce debt.
Disputes with worker representatives suggest Spohr might have trouble reaching those goals as he tries to balance the need for more staff with a push to cut costs.
Still, the airline last month said that it returned to profitability in the second quarter of this year, benefiting from surging travel demand that has forced the sector to raise fares and limit seat availability.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would