German flag carrier Lufthansa has reportedly struck a new wage deal with the Verdi United Services Union, which represents tens of thousands of the airline’s ground workers across Germany.
The two sides have been taking part in make-or-break negotiations all week with the help of an independent arbitrator as part of a last-ditch attempt to avoid a longer strike by as many as 25,000 employees.
The Verdi union had been demanding a pay rise of at least 12.5% for its members, who include engineers, baggage handlers, check-in staff, and gate agents, as well as an inflation-busting one-off payment of €3,000.
Lufthansa had only been willing to offer a pay rise of 10%, spread out over a longer time frame than the union proposed.
The disagreement had led to a series of so-called ‘warning strikes’ in which ground workers held 24-48 hour long walkouts with little notice. The strike action is believed to have cost Lufthansa at least €250 million since the start of 2024.
Full details of the agreement struck between Verdi and Lufthansa remain under wraps but chief union negotiator Marvin Reschinsky said he was “very satisfied with result of the mediation”.
Lufthansa’s human resources director, Michael Niggemann, commented that the airline was also happy with the “compromise” agreement, which will result in “substantial wage increases.”
The airline is still attempting to reach a wage deal with cabin crew represented by the UFO Independent Flight Attendants Association. Cabin crew have already staged their own 48-hour ‘warning strike’ and have threatened further walkouts unless Lufthansa caves to their demands.
Lufthansa has also been actively negotiating with the UFO all week, but no agreement has yet been reached. The union said on Wednesday that Lufthansa is refusing to concede “comparatively small details” which is “incomprehensible in the overall context”.
Negotiators will meet again next week in an attempt to break the deadlock, but the cabin crew union has not yet ruled out further strike action.
