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Lufthansa strikes deal with pilots
Last updated on Feb 16, 2017, 04:10 pm
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Germany's largest airline, Lufthansa, has struck a deal with pilots union to resolve a five-year-long dispute with pilots that has cost it millions of euros.
The company agreed to increase wages by a total of 8.7% in four stages. It also agreed to a one-time payout of €30 million.
The new wage agreement would cover 5400 pilots employed with the airline.
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Background
About Lufthansa
![About Lufthansa]( "About Lufthansa")
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Deutsche Lufthansa (Lufthansa) is Germany's largest airline; when combined with its subsidiaries, it is also Europe's largest airline.
Its fleet size is more than 270 aircraft and its services extend to 18 domestic destinations and 197 international destinations in 78 countries.
According to statistics, in the year 2014, Lufthansa was responsible for flying over 106 million passengers.
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VC
Vereinigung Cockpit
![Vereinigung Cockpit]( "Vereinigung Cockpit")
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The Vereinigung Cockpit (VC) is an association of commercial pilots and flight engineers in Germany.
It was founded on 15th March, 1969.
Priorities of the union include dealing with professional and tariff policy interests and principles such as flight safety.
It also supervises German airports in terms of their safety.
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29 Nov 2016
Lufthansa seeks injunction on pilot strikes
![Lufthansa seeks injunction on pilot strikes]( "Lufthansa seeks injunction on pilot strikes")
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Lufthansa pilots announced yet another upcoming strike on Tuesday and Wednesday.
Following this decision, Lufthansa approached a court in Munich to place a temporary injunction on the planned strikes.
Just last week, the pilots of Lufthansa went on a 4-day strike.
At the heart of the issue lies a conflict related to a hike in wages demanded by pilots.
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The Issue
The reason behind Lufthansa's pilot strikes
![The reason behind Lufthansa's pilot strikes]( "The reason behind Lufthansa's pilot strikes")
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Tuesday's and Wednesday's scheduled strikes are a part of a long-term disagreement between Lufthansa and Vereinigung Cockpit (VC).
VC is currently demanding for an average 3.7% annual pay hike since the year 2012 for 5,400 members.
On Friday, Lufthansa offered its pilots a 2.4% wage increase in 2016 and a 2% increase in 2017.
It also offered a straight-up payment totalling 1.8 months' salary.
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Stands
Viewpoints of the parties
![Viewpoints of the parties]( "Viewpoints of the parties")
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VC rejected the offer put forth by Lufthansa stating that the airline "has refused to put forward an offer that can at least form the basis of a negotiation."
Chief executive of Lufthansa Carsten Spohr said that VC's demands are threatening the future of Lufthansa.
"There is no more leeway for even better offers when escalation is wanted, opposed to a solution," he said.
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Data
Last week's strike
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The union cancelled 2,800 flights last week. The strike, which lasted for four days affected 350,000 passengers. According to airline estimates, the pilot strikes are costing Lufthansa approximately 10 million euros per day.
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16 Feb 2017
Lufthansa strikes deal with pilots
![Lufthansa strikes deal with pilots]( "Lufthansa strikes deal with pilots")
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Germany's largest airline, Lufthansa, has struck a deal with pilots union to resolve a five-year-long dispute with pilots that has cost it millions of euros.
The company agreed to increase wages by a total of 8.7% in four stages. It also agreed to a one-time payout of €30 million.
The new wage agreement would cover 5400 pilots employed with the airline.
