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The Lufthansa branch loses almost 2 million francs a day. The cabin crew union has now agreed on an austerity package with Swiss. But it has not yet eliminated all obstacles.
Struggle for working conditions: A Swiss crew member prepares a flight to London for landing.
Photo: Salvatore Di Nolfi (Keystone)
In the struggle for the survival of the Swiss, the approximately 4,000 cabin crew members must be prepared for painful cuts. The savings plan that the airline has negotiated with the Kapers union provides for wage cuts and the elimination of vacation days. In addition, crews on long-haul flights are thinned out and fly more often.
These are the cornerstones of the agreement between Swiss and the cabin crew union Kapers, presented to this newspaper. Kapers and Swiss also released a press release on Friday evening announcing the savings plan agreement, but without giving details. “Switzerland allows the entire savings package to save an average of 10% on cabin crew by the end of 2023,” said Kapers.
Fewer companions in the long haul
The austerity efforts will affect the next three years. The biggest savings will be achieved by thinning out crews on long-haul routes. From next March, Swiss will fly to destinations such as Hong Kong, Singapore or San Francisco with at least one less flight attendant. Example: On a Boeing 777, 14 cabin crew members normally take care of the passengers. From March there will be only 13.
Also, teams should rotate faster. Instead of staying for two nights as usual after a long-haul flight to Hong Kong, the stay is reduced to just one night. This means: fewer staff need fewer hotel nights on site and instead fly more frequently. This saves money.
Painful loss of wages
However, there are wage cuts: From March to August 2021, Switzerland wants to raise the short-term wages of employees who receive less than 4,000 francs no more to 100, but only 95 percent.
In the months following the end of short-term work, September to December 2021, all crew members will therefore need to be prepared for a reduced pay. The principle applies: “Those who fly more get more wages”.
An example of this: If a flight attendant does 100 percent of his scheduled assignments, he still gets only 95 percent of his pay. If, on the other hand, he can only carry out 30 percent of his assignments, the salary drops from a maximum of 10 percent to 90 percent. There shouldn’t be a bigger discount.
No thirteenth salary anymore
Further cuts follow: in 2022, the thirteenth monthly salary for the head of the cabin will be eliminated for one year. Holidays are reduced to two days for the entire cabin crew. And in 2023 an otherwise pending wage step will be postponed for all concerned.
Union members have yet to approve the savings plan. The approval of two thirds of the votes cast is required. The vote is expected to take place in January.
Trade union leaders are trying to sweeten this bitter pill for their members by saying that austerity measures are “clearly limited in time”. For the next moment there should be a new collective bargaining agreement which will bring improvements and which Switzerland will continue to be ready to conclude if it can count on the solidarity of the cabin crew now in crisis.
The austerity package aims to ensure that Switzerland does not have to carry out any layoffs. The Planned cut of 1000 jobs it should be achieved through early retirement and natural fluctuations. According to Swiss, both the downsizing and the cabin crew savings package are expected to reduce costs by 10% per year.
If the plan isn’t enough
Whether this is enough will be decided in the spring of next year. Should it become necessary to terminate the contract, Kapers has already agreed the key points for a partial social plan with Swiss. It affects those employees who only have between one and three years on the Swiss paycheck. In other words, whoever hired last must be the first to leave.
According to the plans, those affected are expected to receive full pay plus a one-time fee of CHF 2,000 per child during the notice period. There are no further payments.
Annual loss in sight
Due to travel restrictions, Swiss business has collapsed: in the first nine months, the Lufthansa branch carried 70% fewer passengers than in the same period last year. There was an operating loss of around 415 million francs. Switzerland currently loses between 1.5 and 2 million francs per day. Thanks to federal aid and bank loans, liquidity is not in danger, CFO Markus Binkert had assured.
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