The aviation industry’s downturn from the novel coronavirus pandemic has led to Lufthansa Technik agreeing a short-time working plan for staff across most of its facilities in Germany until the end of August.
In a move that will effect around 12,000 members of staff, the MRO says that in order to keep the financial impact on employees as low as possible, it will initially top up the short-time working allowance paid by Germany’s Federal Employment Agency to 90% of an employee’s net salary lost through short-time working.
Last month, Berlin expanded the government-subsidized scheme, known as “Kurzarbeit”, which allows businesses to send staff home or reduce working hours without the threat of layoffs with the government stepping in to cover any salary shortfalls.
Lufthansa Technik says the plan will initially run until August 31, 2020 and covers tariff staff along with non-tariff employees who are not compensated based on a collective bargaining agreement.
The short-time working plan covers every facility in Germany except for Lufthansa Technik AERO Alzey, which repairs CF34, PW100-series and PW150 turboprop engines, and Lufthansa Bombardier Aviation Services, which focuses on Bombardier business jets.
Managerial staff will also be placed on short-time working agreements as a result in largescale workload reductions. The company will top up their short-time working allowance to 80 percent of their net salary. However, management staff have already taken voluntary salary cuts.
Its global affiliates and subsidiaries, which number more than 30 entities, will seek similar arrangements in their respective countries.
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