Lufthansa and pilots' union Vereinigung Cockpit reach settlement

Lufthansa and pilots’ union Vereinigung Cockpit accepted the mediation recommendation of Dr. Gunter Pleuger on February 15, ending a long-running dispute over salaries. His recommendation contains the following key points: 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%. With retroactive effect as of January 1, 2016, a raise in monthly income of 2.0% and as of January 1, 2017 of 2.3%. As of January 1, 2018, an increase of 2.4% and a further 2.0% as of January 1, 2019. An additional one-off payment amounting to a total of approximately €30m, 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. Implementing the mediation recommendation regarding the collective remuneration agreement will result in increased cockpit costs of around €85 million a year. In order to compensate for these additional costs, 40 aircraft will be operated outside the Group tariff agreement, in contrast to previous fleet planning. Details on the design of a new platform for the operation of these aircraft will be finalized in the coming weeks. The job prospects of ground and cabin personnel will not be affected by this step.