FRANKFURT- Lufthansa (LH) and the trade union Verdi have reached a new collective wage agreement covering approximately 20,000 ground staff employed by Deutsche Lufthansa, Lufthansa Technik, Lufthansa Cargo, and other affiliated companies.
This agreement entails pay raises of approximately 12.5% implemented in two phases, focusing on bolstering compensation for lower and middle-income employees.
Lufthansa Verdi Labor Agreement
The resolution was achieved through an arbitration process involving Thuringia’s Minister, President Bodo Ramelow, and Dr. Frank-Jürgen Weise, former head of the Federal Employment Agency, effectively resolving the wage dispute that persisted since the beginning of the year.
Dr. Michael Niggemann, Chief Human Resources Officer and Labor Director of Deutsche Lufthansa AG remarked:
“We are delighted to have reached a mutual agreement, and I extend my sincere gratitude to the arbitrators involved. The recent weeks have been demanding for both our passengers and our staff. Hence, the agreement we have now achieved brings welcome relief. Our employees will benefit from substantial and sustainable salary increases. Considering the dedication of our colleagues daily, salaries must progress accordingly. Furthermore, this agreement provides much-needed stability for our guests and our companies. Undoubtedly, it presents significant economic challenges for us, which we are committed to addressing. Nevertheless, our collective focus remains on our core strengths: being a dependable partner for our customers and an appealing employer offering promising prospects for our workforce.”
Bodo Ramelow, the Minister-President of Thuringia, expressed:
“I deeply appreciate the opportunity to play a role in resolving this wage dispute. The agreement marks a significant victory for Lufthansa employees and passengers, providing reassurance and stability and alleviating concerns about potential strikes. As a frequent Lufthansa flyer myself, I am particularly gratified by this outcome. I am grateful to the trade union representatives Verdi and Lufthansa for engaging in three days of constructive and solution-oriented negotiations characterized by trust and a spirit of compromise.”
Dr. Frank-Jürgen Weise, former head of the Federal Employment Agency, stated:
“The collective agreement reached is beneficial for the employees. However, for Lufthansa, it poses a significant economic hurdle, particularly in an international landscape where many nations heavily subsidize their ‘critical infrastructure’. The negotiations between Lufthansa and Verdi were challenging due to the diverse range of issues involved in the varying levels of services requested and provided. Yet, they were conducted with factual accuracy and mutual respect. The interests of the employees, the well-being of the company, and the satisfaction of the customers guided the arbitrators.”
Detailed on New Agreement
The detailed breakdown of the new collective agreement is as follows:
- Average salary increases of approximately 12.5%.
- Retroactively effective from January 1, 2024: a pay raise of 7% (with a minimum of 280 euros).
- Starting from March 1, 2025: a raise in compensation comprising a basic increment of 150 euros and a 2% increase (equivalent to an average overall increase exceeding 5%).
- Payment of inflation compensation premiums totaling 3,000 euros net, disbursed in two installments: 2,000 euros at the earliest convenience and 1,000 euros by November 2024.
Other notable components of the agreement include:
- Harmonization of working conditions between East and West regions.
- The introduction of a shift allowance was set at 3.6%.
- Provide flexible working hours, allowing up to 40 hours for Deutsche Lufthansa employees.
- Enhancement of holiday pay supplement by 150 euros starting from 2025.
- Increase the ticket allowance in Germany to 30 euros.
- A comprehensive package tailored for trainees.
- A term of at least 24 months for the agreement.
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