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Lufthansa and pilots reach deal

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But clashes over cutting costs may harm agreement
Lufthansa and the pilots’ union Vereinigung Cockpit have agreed to a mediator’s pay recommendations. However, the airline plans to offset the cost by using more crews on cheaper contracts, a move that could harm the deal.
The agreement potentially ends a long succession of strikes at Lufthansa. The airline has agreed to an 8.7% pay rise for 5,400 pilots, to be implemented in several stages, plus €30 million in one-off payments, adding around €85 million to its annual costs.
To make up for this expense, Lufthansa says that 40 new aircraft due for delivery will be staffed not by crews on collective labour agreements at its core brand but by those from elsewhere in the group.
Vereinigung Cockpit says the proposals will be put to a vote, with the result expected by the end of March. The plan to use crews on cheaper contracts could affect the outcome.
“It will be hard for some of our members to accept and it could impact talks over other issues,” union spokesman Markus Wahl told Reuters.
Reuters

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