DLH_Balance_2016_ENG - Employment policy based on partnership

It is tried-and-tested Company policy to settle clashes of interests between Com- pany management and the bodies repre- senting employees in a transparent man- ner. A fair approach to coexistence in all areas creates the balance needed to advance the Lufthansa Group’s position in the market. The growing plurality of opin- ions and opinion leaderships, much like developments in society as a whole, is increasingly a challenge for all parties concerned. The guiding principles for joint efforts are exibility and responsiveness. Partnership in collective agreements The Lufthansa Group employs its staff under conditions that guarantee them social and material security not only during but also after their working years. These are established on the basis of collective agreements that the Company negotiates with its union partners Vereinte Dienstleistungsgewerkschaft (ver.di), Ver- einigung Cockpit (VC), and Unabh ngige Flugbegleiter Organisation e.V. (UFO). The goal is to treat all employee groups within the Company fairly and justly – a desid- eratum that the multiplicity of unions within the Company presents with an array of increasingly challenging conditions. You can nd the latest information on the ongoing collective bargaining negotiations at www.lufthansagroup.com/media Active pay and social policy abroad Internationalization and globalization offer a broad range of opportunities for the Group’s business and personnel proces- ses. As a company with international oper- ations, Lufthansa’s pay and social policies are guided by conditions in the various countries. The focus is on the long-term de nition of the conditions of employment, which depend on the needs of the employ- ees, operational requirements, and the local labor market – with the inclusion of compensation rules, working conditions, and pension schemes. Lufthansa de nes these agreements in cooperation with internal labor committees and employees. The Company is a party to collective wage bargaining with employees in about 25 countries. In all countries where Lufthansa acts unilaterally, the Company uses bench- marks and macroeconomic data such as in ation gures to review salaries usually once a year on the basis of market and competitiveness criteria. In countries with very high rates of in ation, this assessment is performed more often, given the circum- stances, and usually leads to pay increases. In this way the Lufthansa Group offers continual review and adjustment of working conditions for its locally employed staff. As a signatory to the UN Global Compact, Lufthansa has documented its support for freedom of association and the right to collective bargaining for all of its employees worldwide (see page 27). Employees in any country where Lufthansa companies are active are free to lawfully organize themselves and become involved in de- ning their working conditions. The Lufthansa Group’s success depends greatly on the ideas, enthusiasm and commitment of its employees. Therefore, the aviation company attaches the greatest importance to providing its employees with an attractive work environment and appropriate salaries. Likewise, it is an established tradition always to balance the economic interests of the Company with the expectations and needs of its employees. Employment policy based on partnership 88 // Social Responsibility

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