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Lufthansa, cabin crew settle pay dispute
By Kurt Hofmann | November 13, 2012
Lufthansa (LH) and its cabin crew, represented by the UFO union, have
reached an agreement to resolve a pay dispute that has been ongoing
since April (ATW Daily News, Sept. 7).
The new pay agreement, negotiated under arbitration, will raise the cabin crew’s pay 3.95%.
In addition to the pay increase, all cabin staff will receive a one-off payment of €320 ($406.95). UFO also agreed to other concessions, including allowing LH to offer new employees lower-cost contracts.
In exchange, LH said there would be no layoffs through at least Dec. 31, 2014, and agreed that any employees who work for its Germanwings subsidiary would remain LH employees.
LH would not comment on how much the agreement will cost the carrier, especially in light of its cost-cutting program SCORE to improve annual earnings by €1.5 billion (ATW Daily News, Oct. 31).
The new pay agreement, negotiated under arbitration, will raise the cabin crew’s pay 3.95%.
In addition to the pay increase, all cabin staff will receive a one-off payment of €320 ($406.95). UFO also agreed to other concessions, including allowing LH to offer new employees lower-cost contracts.
In exchange, LH said there would be no layoffs through at least Dec. 31, 2014, and agreed that any employees who work for its Germanwings subsidiary would remain LH employees.
LH would not comment on how much the agreement will cost the carrier, especially in light of its cost-cutting program SCORE to improve annual earnings by €1.5 billion (ATW Daily News, Oct. 31).
