Air Traffic Employers’ Association (AGVL) and ver.di reached agreement at pay negotiations for Lufthansa ground staff

Agreement, set to run for 26 months, provides for pay rises differentiated by business segment / Lufthansa pledges employment safeguards

At the fourth round of wage talks for around 33,000 Lufthansa ground staff in Germany, the Air Traffic Employers’ Association (AGVL) and the ver.di union reached agreement on 1 May. The agreement provides for pay rises differentiated for the first time according to the performances of the different business segments. It is valid for 26 months from 1 February 2013 to 31 March 2015.

Under the terms of the settlement, employees of Deutsche Lufthansa AG are to receive a pay increase of 3.0 per cent in two stages, the first on 1 August 2013 (1.5 per cent), the second on 1 August 2014 (1.5 per cent). The increase reflects the current difficult situation at Lufthansa German Airlines.

Pay for staff at Lufthansa Technik and Lufthansa Cargo is to rise in two stages by 4.7 per cent: Namely by 2.4 per cent on 1 August 2013 and a further 2.3 per cent on 1 August 2014.

Staff at Lufthansa Systems are to receive similar increases to those at Lufthansa Technik and Lufthansa Cargo on 1 November 2013 and 1 November 2014.

A pay rise of 5.2 per cent is also to be granted in two stages to trainees at all the business areas: 2.7 per cent on 1 August 2013 and 2.5 per cent on 1 August 2014.

A business area-specific settlement for employees at LSG SkyChefs was concluded last February.

Additionally, the two sides have agreed on the principal details for new and competitive pay structures for decentral stations and Global Business Services, in which Lufthansa is to bundle specific administrative functions. Pay agreements are to be worked out by 31 October 2013.

Lufthansa is to refrain from compulsory redundancies as part of employment safeguards up to 31 March 2015. This commitment is valid for employees switching to the new pay structures up to 2020.

In return, ver.di has agreed to six “pay-freeze“ months from February to July 2013 as the union’s contribution to the SCORE programme at safeguarding earnings at the Lufthansa Group.

“This pay settlement sends a major signal in respect of differentiated  wage agreements within the Lufthansa Group and will thereby contribute to the success of the SCORE programme designed to underpin the Group’s future,“ said the AGVL negotiating leader and Lufthansa Labour Director, Stefan Lauer. “At difficult but constructive negotiations, we have concluded a fair settlement in the interests of both sides, which opens up further future perspectives. It is important now that we offer our passengers reliable flight schedules free from disruption.“

The two sides must approve the agreement by 31 May 2013.