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Lufthansa ultimatum on German costs

German airline Lufthansa is threatening to cut jobs in Germany if employee representatives refuse to agree to cuts in personnel costs, the Financial Times Deutschland reported today.

The newspaper quoted a letter from the head of the group's employees' council, Wolf Liebetrau, as saying said the German flag carrier was demanding cuts of up to 40% in labour costs, otherwise jobs would have to be axed.

A customer service centre in Kassel, with a workforce of 350, could be shut down if worker representatives there did not agree to the cost cuts, FT Deutschland said.

The employees' council believed that the same could apply to around 12,000 ground staff at other sites around the country, Mr Liebetrau said.