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Lufthansa Pilots to Strike Wednesday in Walkout Over Pay

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  • Lufthansa Pilots to Strike Wednesday in Walkout Over Pay

Deutsche Lufthansa AG’s pilots will take strike action Wednesday in their long-running dispute over pay.

The walkout will affect short- and long-haul services from Germany operated by Lufthansa’s namesake brand, the Vereinigung Cockpit union said in a statement Monday. It will come the day after action by flight attendants at the group’s Eurowings division.

The pilot strike is the latest in a two-year standoff over remuneration, working conditions and moves to turn Eurowings into a fully fledged discount carrier with a bigger share of flights. The last walkout by flight crew in September 2015 was halted after a court ruled it an illegal effort to influence corporate strategy, and more recent talks have been restricted to pay issues.

“The permanent refusal of management to also give cockpit crews a reasonable pay rise is not acceptable,” Vereinigung Cockpit board member Joerg Handwerg said in the release. The union warned last week that talks had broken down and dismissed Lufthansa’s plans to bring in an arbitrator.

Pilots are seeking a raise totaling about 20 percent for the years spanning 2012, when their current deal expired, through 2017 — an average annual increase of about 3.7 percent. Lufthansa has offered 2.5 percent, or 0.38 percent a year, through 2018.

Lufthansa, which has frozen pilot hiring until a new pay deal is agreed, said a strike “is not the right way” to go, especially given the offer of mediation. It pledged to re-book customers with other airlines where possible.

Chief Executive Officer Carsten Spohr has been dogged by unrest since taking charge in 2014. While accords with cabin crew and ground staff will ease a towering pension deficit, he has also failed to secure terms with flight attendants at Eurowings, leading to walkouts at the discount arm.

Protests were set for 5 a.m. to 8 p.m Tuesday after the Ver.di union called for walkouts among members in Dusseldorf and Hamburg. In Hamburg, more than one-third of Eurowings arrivals and departures were canceled as a result, the city’s airport said in a statement early on Tuesday. Delays may also occur, while further cancellations cannot be ruled out, it said.

Strikes forced Lufthansa to cancel more than 16,000 flights in 2014 and 2015, cutting 463 million euros ($523 million) from its operating profit.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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