Lufthansa and its pilots union have reached an agreement, ending
a five-year collective bargaining dispute that has resulted in several strikes
in recent years.
The agreement, which lasts through June 2022, includes a
total 11.4 percent wage increase over that period, a shift from a defined
benefit pension to a defined contribution pension and a gradual increase of the
retirement age. It replaces the terms Lufthansa proposed
last month following mediation.
Even with the pay raise, the agreement will significantly
decrease cockpit costs for Lufthansa, according to the company. "This is
not only the end of the longest collective bargaining dispute in our company's
history, it also creates a sustainable deal that will last until 2022,"
Deutsche Lufthansa head of legal affairs and HR Bettina Volkens said. "The
path to this result exacted a heavy toll from everyone involved, but … it was
worth it."
The
agreement is on nonbinding terms, but Lufthansa's executive board said they
likely will become legally binding.