Cargolux (CV, Luxembourg) reportedly transferred a second of its eleven B747-400(F)s to Cargolux Italia (C8, Milan Malpensa) on September 25 as part of plans to boost its presence in the Italian international cargo market. The move, however, has drawn severe criticism from the Luxembourg Confederation of Christian Trade Unions (LCGB) and Luxembourg’s pilot association (ALPL) which claim the decision to transfer the aircraft to Italy and 25 jobs along with it, amounts to a forced cost-cutting programme that could lead to more outsourcing in the future.
"By sending a second airplane to its subsidiary, Cargolux Italia gives validity to the concerns previously raised by LCGB that Cargolux management is going down a path of outsourcing and social dumping." the LCGB said.
The union, which says Cargolux Italia will immediately deploy the aircraft on routes to and from Luxembourg, which have so far been provided by Cargolux itself, urged all pilot members to engage in industrial action in protest at the move.
It has also presented management with a Memorandum of Understanding (MOU) committing it to maintaining jobs in Luxembourg across all functions.
For its part, the ALPL has advocated the disbandment of Cargolux Italia while concentrating all Cargolux operations at its Luxembourg hub as a means of cutting costs and streamlining both operations and administrative activities.
Earlier this month, CEO Dirk Reich attempted to dissuade such claims arguing that in the long term, the only way for the carrier to survive in the currently-depressed cargo market, was to lower costs.
"From an extremely short-term perspective they are right. In the short term, Cargolux could improve the financials by closing down all negative routes, some of which are flown also from Italy," the CEO told Europe's CargoForwarder magazine. "Such a measure would lead to less employment both in Luxembourg and in Italy though and cause a long term financial problem; I am therefore surprised by such a proposal from the unions. The only way to ensure the long term success of Cargolux is to secure growth at lower costs. I am convinced that ultimately everybody will understand the drastic changes in the airfreight market and the need to respond appropriately to the challenges that we face."
