Lufthansa secures landmark long-term pay deal with pilots, ensuring stability and growth

Aug 18 2023 Travel trends

In a significant development for both Lufthansa and its dedicated workforce, the German airline has successfully reached a long-term collective labor agreement with pilots represented by the Vereinigung Cockpit (VC) union. This accord cements pay terms and conditions that will span the horizon until at least the end of 2026, marking a pivotal moment in Lufthansa's journey to enhance stability, foster growth, and fortify its social partnership.

Lufthansa strikes result in successful deal

The backdrop to this achievement harkens back to the turbulence experienced by Lufthansa in September of the previous year, when pilots from both the mainline and cargo divisions staged disruptions through strikes. This compelled the airline to expedite a short-term labor deal to quell the unrest. One week ago, Lufthansa unveiled its aspirations for a new comprehensive long-term pay and conditions agreement with VC, signaling a commitment to harmonious labor relations.

Today, Lufthansa celebrates the resounding approval from pilots, who have embraced the collective pay deal that will remain steadfast until December 2026, alongside an accompanying terms of service agreement that spans until at least December 2027. This momentous agreement encompasses the interests of approximately 5,200 staff members, reflecting Lufthansa's dedication to engaging with its workforce in a collaborative and mutually beneficial manner.

Under the terms of this pioneering accord, pilots will experience a progressive enhancement in compensation. Commencing this December, pilots will receive an auspicious 7% pay rise, paving the way for subsequent 5% pay increases at the outset of 2025 and 2026. In addition to this, the agreement features a one-time payment equivalent to 3.75% of fixed annual compensation, with a cap of €3,000 ($3,292), extending goodwill and acknowledgement of their contributions.

Rise in pay and better work-life balance

Beyond financial gains, this agreement affords pilots the invaluable gift of enhanced work-life balance. With streamlined planning of leisure time and bolstered roster stability, pilots can embrace predictability and equilibrium in their demanding roles. Furthermore, the agreement accommodates the seamless integration of pilots from Lufthansa's former Germanwings unit, further enhancing the airline's cohesiveness and operational synergy.

Michael Niggemann, Lufthansa Group Executive Board Member and Labor Director, underscores the complexity of the agreement from an economic standpoint, while simultaneously emphasizing its resolute focus on future preparedness. Niggemann affirms that this pivotal accord propels Lufthansa into an era of sound planning, particularly in the realm of long-haul growth. The harmony that pervades this agreement serves as a testament to the enduring strength of the social partnership between Lufthansa and its valued pilot community.

Better conditions for Lufthansa crew members

As the aviation industry navigates an evolving landscape, Lufthansa's commitment to its pilots not only reinforces a harmonious workplace but also positions the airline for a trajectory of sustainable growth and excellence, ensuring that the skies remain open to new horizons.