Lufthansa cabin crew talks near deadline in decisive labour month

Lufthansa faces the spectre of a new round of strikes as labour talks critical to restructuring the airline come to a head. Lufthansa is scheduled Thursday to complete mediation with its flight-attendants union after a failed effort a year ago led to the airline’s longest walkout ever. The company said in May that talks with pilots, who have also held walkouts over the past two years, must produce major progress by the end of July. In response to a series of strikes, CEO Carsten Spohr has stated repeatedly that he can’t compromise on spending-reduction efforts without jeopardizing the carrier’s future. The unsettled labour relations put Lufthansa in a bind as airlines throughout Europe grapple with a potential drop in demand from the fallout of the UK’s vote to exit the EU. Concerns about a possible recession and lower fares have caused airline stocks to tumble since last week’s UK referendum, including a 14% slump at Lufthansa. The conflict at the German company mirrors those at competitors including Air France-KLM Group, which has also been hobbled by pilot strikes over cost-cutting moves. The disputes at Lufthansa center on benefits and pay, and terms for employees shifting between the Eurowings budget unit and other group airlines. Strikes by cabin crews and pilots reduced group operating profit in 2014 and 2015 by a combined E463m. “June 30 will definitely remain the final date” to conclude the talks with flight attendants, said Nicoley Baublies, chief negotiator of the UFO cabin-crew union, declining to provide details. Lufthansa said the negotiations are in their final phase. <br/>