October 11, 2017
Lufthansa and Vereinigung Cockpit union sign long-term collective agreement
All previously open issues between Lufthansa and the pilots’ trade union, Vereinigung Cockpit, have been settled with the signing of a new collective labor agreement (CLA), the basis of which was agreed earlier in March this year. The CLA will still be subject to trade union members’ approval in the form of a ballot.
Agreements have been reached not only on new remuneration, but also on pension and transitional payments, up to June 2022. This will result in a saving of 15 percent of staff costs in the cockpit – before wage increases to be paid in the future. Additionally, the agreement allows for the hiring of new junior pilots.
Dr. Bettina Volkens, Chief Officer Corporate Human Resources and Legal Affairs, is quoted as saying: “With the collective bargaining agreement, we have created a foundation for a new social partnership with the VC. We are jointly creating a sustainable collective bargaining peace until 2022. This compromise opens up career prospects for our pilots and makes an important contribution to the competitiveness of our company.”
The pension scheme will change from a system of defined benefits to a system of defined contributions, which had already been agreed with ground and cabin staff. Consequently, pension liabilities will be reduced by a high three-digit million-euro amount. 2017 EBIT should improve by a significant three-digit million-euro amount.
The terms and conditions agreed on will be for the operation of a minimum of 325 aircraft with pilots from Lufthansa, Lufthansa Cargo and Germanwings by the end of 2022. More than 700 junior pilots will be taken on and a minimum 600 positions for future captains will also be created.
Pilots at Lufthansa, Lufthansa Cargo and Germanwings will receive staggered pay increases totaling 10.3 percent. and a one-off payment of up to 1.8 times monthly salary for the period of May 2012 until June 2022.