The deals were announced in a press release published on Tuesday, after a year of what the firm described as “intense negotiations”.

The two new agreements signed with unions the LCGB and OGBL cover the period from 1 December 2018 to 31 December 2019, and the second enters into force from 1 January 2020 to 31 December 2022. They are expected to benefit more than 1,300 employees covered by the collective working agreement.

In addition to the salary increases spread over four years, staff hired after December 2015 would benefit from an additional salary adjustment, off-day and holiday entitlements, bringing staff on similar levels.

Cargolux said that the agreements also brought job security for the airline’s employees. It did not expand on how it would do this, however.

 “The improvements in the new agreement became necessary after the employees' concessions made in the previous collective labour agreement. The new agreement addresses the main concerns of our members; a salary increase, improved work-life balance for employees and the pilots’ flight time limitations. The elimination of what has often been referred to as ‘B-Scale’ should make it possible for Cargolux to hire the staff it needs”, said Paul de Araujo, LCGB Union Secretary.

 “We are happy that the social partners could negotiate a substantial salary increase and measures improving the work life balance of Cargolux employees. This is a very important recognition of the employees’ efforts during the last years and their contribution to the good financial results of the company for all Cargolux employees, ground staff and pilots”, said Michelle Cloos, OGBL central secretary.