GERMAN flag carrier Deutsche lufthansa and labour union Verdi have signed an agreement on a wage deal for the company's 20,000 ground crew after a one-day strike led to a wave of cancellations.
The deal includes monthly pay hikes in three stages through the end of next year, Verdi said in an emailed statement. Check-in staff will get between 13.6 per cent and 18.4 per cent more pay, helping workers cope with higher energy bills.
'The result includes compensation for inflation and an additional increase in real wages,' said Verdi lead negotiator Christine Behle. 'It was important to us to achieve this genuine balance in order to protect employees in this difficult economic situation.'
The deal comes after a warning strike by ground crew last month led to hundreds of cancellations at Lufthansa's Frankfurt and Munich hubs. The carrier said the walkouts cost it EUR35 million (US$35.8 million).
The airline's board member responsible for human resources, Michael Niggemann, welcomed a 'good solution' and reiterated the airline's confidence it can reach an agreement with pilots and cabin staff, who are demanding higher wages to offset surging consumer prices.
Lufthansa could still face further disruption if it can't agree a pay deal with its pilots. Members have already voted in favour of strikes, but haven't yet decided on a date.
Pilot strikes at Europe's biggest airline would add to a summer of chaos across the continent, where airports and airlines have struggled to accommodate a jump in bookings compared with the pandemic-induced slowdown.
Surging inflation is prompting demands for higher pay, bringing the threat of strikes to several sectors. Lufthansa's pilots are demanding wage increases to help offset the near double-digit rise in consumer prices.
Lufthansa CEO Carsten Spohr has pledged to boost the airline's earnings margin to a minimum of eight per cent by 2024, a move he said that was needed to reduce debt. Disputes with worker representatives and concessions over pay suggest Mr Spohr might have trouble reaching those goals, as he tries to balance the need for more staff with a push to cut costs.
Still, the airline this month said it returned to profitability in the second quarter, benefiting from surging travel demand that's forced the sector to raise fares and limit seat availability.
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The deal includes monthly pay hikes in three stages through the end of next year, Verdi said in an emailed statement. Check-in staff will get between 13.6 per cent and 18.4 per cent more pay, helping workers cope with higher energy bills.
'The result includes compensation for inflation and an additional increase in real wages,' said Verdi lead negotiator Christine Behle. 'It was important to us to achieve this genuine balance in order to protect employees in this difficult economic situation.'
The deal comes after a warning strike by ground crew last month led to hundreds of cancellations at Lufthansa's Frankfurt and Munich hubs. The carrier said the walkouts cost it EUR35 million (US$35.8 million).
The airline's board member responsible for human resources, Michael Niggemann, welcomed a 'good solution' and reiterated the airline's confidence it can reach an agreement with pilots and cabin staff, who are demanding higher wages to offset surging consumer prices.
Lufthansa could still face further disruption if it can't agree a pay deal with its pilots. Members have already voted in favour of strikes, but haven't yet decided on a date.
Pilot strikes at Europe's biggest airline would add to a summer of chaos across the continent, where airports and airlines have struggled to accommodate a jump in bookings compared with the pandemic-induced slowdown.
Surging inflation is prompting demands for higher pay, bringing the threat of strikes to several sectors. Lufthansa's pilots are demanding wage increases to help offset the near double-digit rise in consumer prices.
Lufthansa CEO Carsten Spohr has pledged to boost the airline's earnings margin to a minimum of eight per cent by 2024, a move he said that was needed to reduce debt. Disputes with worker representatives and concessions over pay suggest Mr Spohr might have trouble reaching those goals, as he tries to balance the need for more staff with a push to cut costs.
Still, the airline this month said it returned to profitability in the second quarter, benefiting from surging travel demand that's forced the sector to raise fares and limit seat availability.
SeaNews Turkey
