Lufthansa, flight attendants settle pay dispute

Lufthansa German Airlines and the UFO flight attendants union have reached an agreement to settle their pay dispute. Both sides have today accepted proposals to end the conflict put forward at arbitration by former government economic advisor Professor Bert Rürup. Their agreement resolves the pay dispute, which has occupied the airline since April 2012. The issues discussed at arbitration focused on a pay agreement, profit sharing and the commitment on both sides to negotiate the compensation structure from the arbitration procedure on Jan. 16, 2011. The two sides negotiated on further issues parallel to arbitration. Agreements on those issues are encompassed together with the arbitration accords in the settlement now reached by Lufthansa and the UFO trade union. The pay settlement will come into effect on Jan.1, 2013. This agreement will last until Dec. 31, 2014. Lufthansa German Airlines board member Peter Gerber, who headed the Lufthansa negotiating commission, said, “After months of difficult negotiations, we have now reached an agreement, which takes into account the positions of both sides. For us, the sustainable ongoing development of the pay system with remuneration scales for new staff was essential in the competitive cost environment, in which we operate. Additionally, we have made sweeping concessions in terms of flexibility and productivity. In return, Lufthansa has accepted rises in salary and has made concessions in safeguarding jobs. All in all, we have come to an acceptable settlement, which makes demands on both sides, while taking due account of the interests of the employer and employees.”(http://www.lufthansa.com)