As Deutsche Lufthansa AG (DLAKF) is negotiating a partial or complete sale of LSG group, labor troubles in its airline catering business segment are mounting in the key US market.
- LSG Sky Chefs and North American labor union UNITE HERE are far apart on economic issues in ongoing contract negotiations covering all US employees
- Tightness in the US labor market and political pressure could drive wages and benefits costs higher
- US employees of LSG Sky Chefs voted to authorize strikes and petitioned for release from federal mediation which, if granted, would enable them to strike
- North America is LSG Sky Chefs’ largest market, accounting for 53% of external catering revenue in first half-year of 2019