Lufthansa has agreed a compensation package with 30,000 ground staff, avoiding further strike action that has dogged the airline for the past couple of years.
The German carrier said it will make a one-off payment of €2,250 to each employee with a 2.2 per cent rise.
As part of the deal struck with union group Verdi, workers have also entered into a “fundamentally reformed” collective labour agreement regarding the corporate pension scheme.
The deal covers Lufthansa airport staff as well as catering, IT, freight and maintenance workers.
“With this one-off payment our employees will benefit from this year’s anticipated good corporate results. The 33-month term from 1st April 2015 up until 31st December 2017 will create planning security and harmony between the bargaining parties,” said Dr Bettina Volkens, member of the executive board and corporate chief HR officer.
For newly recruited staff as of January 1 2016, the union succeeded in agreeing on a pension scheme within a Defined Contribution Model. Lufthansa will pay an employer’s contribution amounting to 5.2 per cent of the salary, and in addition, the employees will contribute a co-payment of one per cent.
Volkens added: “I am glad that we can continue to offer an appropriate pension scheme to our employees with this agreement. At the same time, we are able to reduce our risks and costs regarding the pension scheme on a long-term basis due to this new collective labour agreement.”
Lufthansa is yet to reach an agreement with cabin crew, who called for week-long strike action last week. It will meet with union representatives on Wednesday in an attempt to end the long-running dispute.