Lufthansa, Verdi Union Reach Wage Deal

August 1, 2008

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Lufthansa has reached a wage agreement with staff to end a strike that caused hundreds of flight cancellations, both sides said on Friday.

Trade union Verdi said it planned to abandon the strike, which the airline said had so far cost it double-digit millions of euros, from early on Saturday.

Lufthansa added it would take two weeks before it returned to normal operations but expected about 90 percent of European flights to be running in the next four days.

Under the deal, Lufthansa ground staff will get a 5.1 percent pay rise backdated to July 1 and a further 2.3 percent rise from July 2009. They will also receive a one-off payment, the airline said, in a deal lasting 21 months.

The airline said it could raise pay for cabin staff by the same amount but their union, UFO, rejected the offer.

UFO wants a 15 percent rise for its members whose current deal runs until the end of the year.

Lufthansa usually operates about 2,000 flights per day.

(Reuters)