Lufthansa agrees union deal

Lufthansa and the ver.di trad union have reached a new agreement today at their pay
negotiations. From 1 July 2008, the 34,000 on the ground staff are to receive a pay
rise of 5.1 per cent and a further
increase of 2.3 per cent from 1 July 2009. Additionally, the employees are to get a
one-off payment, including a performance-related component depending on their
business segment, of up to 2.4 per
cent of their annual remuneration. The pay settlement is for 21 months, ending on 28
February 2010. It means in effect that Lufthansa is raising the individual pay of
employees by 4.2 per cent over a
period of twelve months.

A similar offer is in the offing for cabin crew, taking into account the specifics
of their working conditions. It is, however provisional on pay parity for cabin crew
staff and pending agreement
between Lufthansa, ver.di and UFO, the flight attendants’ union. The pay agreement
with UFO expires on 31 December 2008. 

In the aftermath of strike action over several days, Lufthansa Executive Board
Member Human Resources Stefan Lauer said the pay settlement is a compromise at the
bearable limit. “It is certainly not
painless for either side. It is, all in all, only acceptable in view of the duration
of the settlement and the performance-related one-off payment. It is imperative,
however, that the increased costs
be compensated by higher productivity. Resolution of the pay dispute on their own
initiative by Lufthansa and ver.di is an important message to our customers as well
as our staff and to Germany as an
economic base. We will go to every length to resume flight operations quickly for
our customers in the customary reliability and quality.”