Champ Cargo Systems (CCS) intends to get rid of almost 10% of its Luxembourg-based workforce. Though this affects only 10 jobs out of a total workforce of 113 working for the cargo
industry’s leading provider of integrated IT solutions, at its global headquarters near LUX Findel Airport, the dismissals have caused considerable unrest internally, as more job cuts could
follow.

The news published by CHAMP’s management in recent weeks sounded quite positive and suggested a prosperous business situation. Just a few days ago, for example, the long-standing cooperation with
the Turkish cargo airline MNG was extended. In January, Japan Airlines hailed the implementation of CHAMP API Gateway, enabling the digital integration of air-land delivery services at 7 major
domestic airports.
Earlier, CCS, Qatar Airways Cargo, and logistics player Agility, announced the completion of the first phase of the ONE Record pilot, kicked off by IATA in collaboration with the industry,
enabling the digital exchange of AWB and other data between different players.

“Unavoidable cost reductions”
For observers, these three examples seem to indicate that CCS’s business is running well, meeting its stakeholders’ expectations. However, the dismissals cast doubt on this assessment. When asked
by the local trade union, Lëtzebuerger Chrëschtleche Gewerkschafts-Bond (LCGB), what the reason for the layoffs was, CHAMP cited “unavoidable cost reductions.” Meanwhile, the union has presented
a plan to the CHAMP management to maintain the jobs according to the principals of Luxembourg’s social model. Implemented in the 1970s, the scheme is based on an institutionalized trialogue
between the government, employers, and trade unions on important economic and social issues, aimed at finding a consensus.

“Lacking a vision,” unionists criticize
However, CHAMP’s reaction to the union’s advance was negative. The LCGB “bitterly regrets the ignorance of the management regarding this proposal, all the more so as the management has never
presented any concrete proof that this reduction of 10 jobs will really be necessary,” the LCGB deplores. Its declaration states further that “any future vision on the part of CHAMP is lacking,”
which, in the opinion of the union, indicates “that the company is aiming at nothing more and nothing less than a rapid reduction in the workforce through a social plan.”
Whether the union’s criticism of the layoffs will have any effect is completely open at the moment. At CHAMP, nobody was available for comment.
Champ Cargosystems is 51% owned by SITA Cargo and 49% by Cargolux.

Luxinnovation appoints Arnaud Lambert
In addition, it should be mentioned that former CHAMP CEO, Arnaud Lambert, has been appointed director of Luxinnovation. The agency’s main mission is to attract international investment, this way
supporting the Grand Duchy’s economic development objectives. Mr. Lambert exited CHAMP on 30SEP20 after spending 16 years with the company. He took up the new position at Luxinnovation on
04JAN21.

Heiner Siegmund

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