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After arbitration: Lufthansa and Verdi agree on new collective labor agreement for ground staff

Lufthansa

Successful arbitration: new collective agreement for ground staff, including substantial wage increase, inflation compensation, holiday pay supplement, package for trainees 

Lufthansa and the trade union Verdi agreed on a new collective wage agreement for the approximately 20,000 ground staff of Deutsche Lufthansa, Lufthansa Technik, Lufthansa Cargo, and other companies1. The wage agreement includes pay increases of around 12.5 per cent in two steps, disproportionately in the lower and middle income groups. Lufthansa and Verdi have thus reached an agreement as part of the arbitration process with Thuringia’s Minister President Bodo Ramelow and Dr. Frank-Jürgen Weise, the former head of the Federal Employment Agency, and have settled the wage dispute that has been ongoing since the beginning of the year.

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

“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”, said Bodo Ramelow, Minister President of Thuringia.

Dr. Frank-Jürgen Weise, former head of the Federal Employment Agency, says: “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 new collective agreement in detail:

Average salary increases of around 12.5 per cent 

  • Retroactive to 1 January 2024: pay increase of 7 percent (but at least 280 euros)
  • As of 1 March 2025: increase in remuneration by a basic amount of 150 euros plus 2 percent (corresponding to an average total increase of over 5 percent)

Payment of inflation compensation premiums totaling 3,000 euros net

  • 2,000 euros as soon as possible, 1,000 euros by November 2024

Other key elements: 

  • Harmonization of working conditions in East and West
  • Introduction of a shift allowance of 3.6 per cent
  • Flexible working hours of up to 40 hours for Deutsche Lufthansa
  • Increase in holiday pay supplement by 150 euros from 2025
  • Increase in Germany ticket allowance to 30 euros
  • Extensive package for trainees

Term of at least 24 months 

 

1. The conclusion of the agreement is subject to approval by the committees.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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