Lufthansa, Verdi Union Agree Ground Services Deal

Lufthansa and the Verdi union representing the airline’s ground staff have agreed a new collective wage settlement for around 28,000 employees.

The agreement, covering Lufthansa, Lufthansa Cargo, Lufthansa Technik and LSG Sky Chefs in Germany provides pay increases of up to six percent and has a term of 33 months from January 1, 2018 to September 30, 2020.

“I am pleased that we have been able to conclude a long-term collective agreement with Verdi for our largest group of employees,” the airline’s Bettina Volkens said. “We have thus achieved collective bargaining peace for all major Lufthansa employee groups in Germany.”

The increase will be paid in two stages, three percent on February 1, 2018, and a further three percent on May 1, 2019.

Lufthansa said the second increase is dependent on the adjusted EBIT margin for the specific business segment, with at least 1.8 percent guaranteed, regardless of the margin achieved.

The variable remuneration model takes into account “the economic situation of our individual business segments,” Volkens said.

Lufthansa Group trainees will receive EUR€40 increases on February 1, 2018 and May 1, 2019.

Verdi negotiator Christine Behle said the agreement was “a good result”.

The agreement is subject to approval by the relevant employee committees.