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Lufthansa strikes pay deal with pilots

Lufthansa has struck a deal with pilots to solve a bitter long-running dispute over pay that has cost the airline millions of euros from continued strike action.

The German airline has agreed a new wage agreement that will see around 5,400 pilots receive a four-stage 8.7 per cent pay rise and a one-off payment of around €5,000 - €6,000 per employee.

The dispute has been going on for five years, with around 14 strikes in that period. Originally Lufthansa offered pilots a 2.5 per cent pay increase, which they described as “inadequate” after seeing the basic salary for executive board members rise 30 per cent.

Lufthansa said the deal will cost around €85 million a year. In order to fund this, it said 40 aircraft will operate outside the agreement.

The new agreement will be in place until the end of 2019.

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The pay-dispute was just one of three main issues, including the pilot pension issue. Once the pay-deal was announced, LH stated that the deal would include 40 new aircraft to be bought, however, many (all?) would be used by the low-cost arm Eurowings...using pilots that are not part pf the LH pay-rise. Actually these pilots make up to 40% less than LH pilots. The payment to pilotes will also be a tough sell to other unions that will see this as preferential treatment. In Germany the latest move by LH is seen as them only fly long-haul under the Lufthansa brand and moving everything else to Eurowings. A few later LH also announced the start flying to India using low-cost brand Eurowings. All this does not speak for less confrontation with staff.

Andreas J. G. Wellauer's picture
Andreas J. G. W... (not verified)

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