The Lufthansa Group has signed a new collective bargaining agreement with the Vereinigung Cockpit union for Lufthansa and Lufthansa Cargo pilots that includes an 18% increase in base pay over the next three and a half years, as well as improved working conditions. The deal was struck on Friday, August 11th. Vereinigung Cockpit union represents 5,200 personnel of Lufthansa Airlines and Lufthansa Cargo.
The agreement consists of two separate agreements, one on remuneration and one on working conditions. The remuneration agreement will be in force until December 31, 2026 and the working conditions agreement will be in force until December 31, 2027. Both include the obligation to maintain “labor peace” or no strikes throughout their term, according to the company in a press release.
We are improving not only the remuneration of our pilots, but also the balance between their profession and private life.Michael Niggemann, Chief Labor Officer of the Lufthansa Group
The salary increase will be carried out progressively. The first increase, of 7%, will be effective December 1, 2023, and will be followed by two increases of 5% at the beginning of both 2025 and 2026. In addition, there will be a one-time payment of 3.75% of the annual fixed remuneration, up to a maximum of 3,000 euros, in 2023.
Variable compensation based on job performance will also be improved, time off will be increased and ten days off per month will be established. Both agreements are subject to approval by the relevant bodies. According to Vereinigung Cockpit union President Stefan Herth, 94.7% of the union’s members voted on the agreements, with 65.% voting in favor of both parts of the agreement.
“This collective bargaining agreement with Vereinigung Cockpit will provide additional stability in our operations and thus also more reliability for our customers,” said Michael Niggemann, Member of the Executive Board and Chief Labor Officer of the Lufthansa Group. “We are improving not only the remuneration of our pilots, but also their ability to maintain an effective balance between their profession and their private life. This new agreement is not easy for us to conclude from an economic perspective.”
In September of last year, the pilots conducted a series of strikes which caused caused a lot of disruption at the end of the summer holidays in Germany. Given the financial impact observed, the airline decided to reach a short-term labor agreement with the pilot’s union until this most recent and longer-lasting deal.