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Wednesday, June 19, 2024

Lufthansa and its pilots agree to a new deal

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With Vereinigung Cockpit (VC), a German pilot union that represents its pilots, Lufthansa has reached a new contract.

The new collective remuneration agreement (VTV) and the collective terms of employment agreement (MTV) constitute this document. The contracts are valid until December 31 of 2026 and 2027, respectively.

A provision in both the VTV and MTV prohibited pilot strikes until the end of their individual contracts.

However, during the duration of the agreement, the pay of pilots employed by Lufthansa and its subsidiary Lufthansa Cargo will increase by a total of 18%, with increases of 7% on December 1, 2023, 5% on January 1, 2025, and 5% on January 1, 2026.

The airline would also reward union members with a “one-off payment of 3.75 percent of fixed annual compensation, up to a maximum of 3,000 euros [$3,297] in 2023.”

Additional advantages will include enhanced variable remuneration tied to the success of the airline, increased roster stability with 10 off days per month, and additional expansion through the integration of former Germanwings pilots into Lufthansa.

The final editing revisions and the approval of “relevant bodies” are still pending for the VTV and MTV agreements.

“With [the agreement] we are improving not only our pilots’ remuneration, but also their ability to maintain an effective balance between their profession and their private lives. This new agreement is not easy for us to conclude from an economic perspective,” Michael Niggemann, Executive Board Member and Labor Director at Lufthansa.

The CEO continued by saying that while it was a difficult economic pill to swallow, it does offer long-term stability and enable growth planning.

Stefan Herth, the president of the VC, said he was “pleased” that the agreement was approved by the union members.

“Today’s acceptance of the collective agreement creates reliability for the pilots, Lufthansa and, last but not least, our passengers,” Herth added. 94.7% of the union’s members voted on the agreements, with 65.5% approving the VTV and MTV.

The VC and Lufthansa are currently “entering into the detailed design as part of the editorial negotiations,” according to the union.

Despite a generally excellent quarter for the company, Lufthansa’s two airlines are still not profitable.

 

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