Lufthansa and Verdi Reach Agreement on Wage Boost for Ground Staff

Friday, March 29, 2024

Lufthansa and the Verdi trade union have reached a new collective wage agreement covering approximately 20,000 ground staff across Deutsche Lufthansa, Lufthansa Technik, Lufthansa Cargo, and related companies[1]. The agreement includes phased pay increases totaling around 12.5%, with a focus on boosting salaries in the lower and middle income brackets. This resolution comes after negotiations involving Thuringia’s Minister President Bodo Ramelow and Dr. Frank-Jürgen Weise, the former head of the Federal Employment Agency, effectively ending the wage dispute that had persisted since the start of the year.

Dr. Michael Niggemann, Chief Human Resources Officer and Labor Director of Deutsche Lufthansa AG: 

“We are very pleased that we have come to a compromise together, and my express thanks also go to the two arbitrators. The past few weeks have demanded a great deal from both our guests and our colleagues. The agreement that has now been reached is therefore good news. Our employees will benefit from significant and sustainable pay rises – we know what our colleagues achieve every day, and it is important to us that salaries develop appropriately and well. At the same time, both our guests and our companies finally have planning security again in this regard. The agreement is of course a major economic challenge for us, to which we must now find answers. In any case, together we will focus all our energy on what makes us special: being a reliable partner for our customers and therefore an attractive employer with excellent perspectives for our employees.” 

Bodo Ramelow, Minister President of Thuringia:

“I am very grateful that I was able to make my personal contribution to settling this wage dispute. The agreement is a great success for Lufthansa employees – and also for passengers, who now have planning security again and do not have to worry about strikes. As a regular Lufthansa customer, I am particularly pleased about this. I would like to thank the representatives of the trade union Verdi and Lufthansa for three constructive and solution-oriented days of negotiations, which were characterized by trust and a willingness to compromise.”

Dr. Frank-Jürgen Weise, former head of the Federal Employment Agency: 

“The agreed collective agreement is good for the employees. For Lufthansa, the agreement is a major economic challenge in an international environment in which many nations heavily subsidize their ‘critical infrastructure’. The negotiations between Lufthansa and Verdi were difficult in terms of the variety of issues, the different levels of services demanded and offered, but also factually sound and humanly respectful. The arbitrators felt that they were acting in the interests of the employees, the welfare of the company, and the customers.”

The comprehensive details of the new collective agreement are as follows:

1. Average salary increments will be approximately 12.5 percent.
2. Retrospective to January 1, 2024, there will be a pay rise of 7 percent (with a minimum increase of 280 euros).
3. Starting from March 1, 2025, remuneration will rise by a base amount of 150 euros along with a 2 percent increase (leading to an average overall increase of over 5 percent).
4. There will be compensation for inflation, amounting to a net total of 3,000 euros, distributed as follows:

• A payment of 2,000 euros that is due immediately, as well as…
• Another payment of 1,000 euros by November 2024.

1. Other notable aspects of the agreement include:

• Alignment of working conditions between Eastern and Western regions.
• Implementation of a shift allowance equating to 3.6 percent.
• Flexibility in working hours, allowing up to 40 hours for Deutsche Lufthansa employees.
• A rise in holiday pay supplement by 150 euros starting in 2025.
• An increase in the Germany ticket allowance to 30 euros.
• Comprehensive benefits package enhancements for trainees.

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