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Lufthansa pilot strike highlights labour issues for Europe's legacy carriers. It's time to wake up

Analysis

An impending three day strike by Lufthansa pilots - described by the carrier as "one of the biggest walkouts" in its history - highlights what continues to be a challenging labour relations environment for Europe's legacy carriers. In spite of years of competition from LCCs and cost efficient long-haul players, and after significant progress with restructuring programmes, such disputes remain common.

Labour-related issues are affecting a number of other airlines, including Austrian Airlines, Air France, Aer Lingus, SAS and Finnair. Even LCC Norwegian Air Shuttle faces key strategic questions in connection with the use of low-cost labour to grow its nascent long-haul business. In general, however, LCCs enjoy a less unionised environment and greater labour flexibility.

It is not uncommon for labour unions to become more militant as the profit cycle picks up, but airlines cannot always hide behind this excuse. As IAG CEO Willie Walsh has said*, "it is not about unions, but management. Management needs determination and can do it if it wants to…Cost creep is requested by unions, but made by management".

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