Lufthansa’s Disco Lufthansa’s leisure subsidiary, Discover Airlines, has agreed to raise pay for workers in the cockpit and the cabin. This is the first collective bargaining agreement the company has had since it started running in 2021, according to the union and the company.
Both sides said the deal is good until the end of 2027 and covers 500 people who work in the cockpit and 1,400 people who work in the cabin.
The staff’s Verdi union said that the deal with Discover Airlines would mean pay raises of up to 38% for cabin crew and at least 16% for pilots.
Discover praised the agreement, which has a term of more than three years, as a safety net for passengers’ journey plans after years of strikes at different airlines.
Bernd Bauer, CEO of Discover Airlines, said that the deal was a big step forward for the young airline but that there were some bad things about it as well.
Bauer wrote in a blog post, “We must not ignore the fact that the agreement also comes with significant cost burdens and restrictions on our planning flexibility.”
Even though Verdi reached a deal, there is still a chance that there will be more strikes because other unions are protesting and want their own collective bargaining agreements.
The company says that strikes at Lufthansa and its subsidiaries have cost the group almost $500 million in earnings. These losses include secondary effects, like customers staying away from the airline.
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