In a rare sign of peace breaking out, it appears both Lufthansa and the Cockpit pilots union have agreed to remediation measures with an arbiter over the long-running pay dispute.
Lufthansa Airbus A380 taxing at Frankfurt Airport – Image, Economy Class and Beyond
The recommendations from the arbiter include:
- A pay increase for the 5,400 pilots in the Group tariff agreement of Lufthansa, Lufthansa Cargo and Germanwings in four stages amounting to a total of around 8.7 percent
- With retroactive effect as of 1 January 2016, a raise in monthly income of 2.0 percent and as of 1 January 2017 of 2.3 percent
- As of 1 January 2018, an increase of 2.4 percent and a further 2.0 percent as of 1 January 2019
- An additional one-off payment amounting to a total of approximately €30 million, which is expected to total around €5,000 to €6,000 per full-time employee
- The term of the remuneration agreements will last to end of 2019
This is probably not the news that Lufthansa wanted, as the costs to operate cockpit crews will now increase by €85 million a year.
As a result, it seems the pilots of 40 new aircraft it is adding to its fleet would not be covered by the compromise agreement.
The deal will need to be ratified by the Cockpit union, with its members requiring to vote on it.
But it’s a bright sign that one industrial dispute that caused a lot of pain for the Lufthansa Group (Lufthansa Main Line, Germanwings and Lufthansa Cargo) is heading towards an end.
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