OGBL addresses coalition partners over Cargolux deal

(CS) Luxembourg labour union OGBL has contacted Xavier Bettel, Etienne Schneider and François Bausch about the future of a shareholder deal between a Chinese investor group and freight carrier Cargolux.

Bettel, Schneider and Bausch represent the prospective coalition partners DP, LSAP and “déi Gréng” who have been in official coalition talks since Tuesday.

Earlier this week, Sustainable Development Minister Claude Wiseler had also called on Bettel to take charge of the Cargolux deal, since a decision on the matter cannot be reached by the outgoing government.

Chinese investor group HNCA has expressed interest in acquiring a 35 percent minority share, previously owned by Qatar Airways and then the Luxembourg state, for 215 million USD.

However, the OGBL on Thursday expressed its opposition to the deal, fearing that part of the maintenance facilities and a number of aircraft will be outsourced to China.

The union accuses Cargolux of a lack of transparency in regards to the negotiations with HNCA, saying that “social dialogue” in this “important project” had been refused.

Additionally, the OGBL commented that they do not think it right that negotiations were led only with one potential investor and that the identity of other potential buyers, as well as their offers, have not been revealed.

At the beginning of the year, it had been rumoured that there were eight bidders for the Cargolux share.

In its closing remarks, the OGBL states that it is committed to ensuring the long-term future of Cargolux, integrating the new shareholder in the Luxembourg social model and safeguarding jobs at the airline.

Additionally, it wants to avoid the minority shareholder to be in a position to block decisions and maintain respect for co-management laws on all levels of company management.