After months and years of squabbling and strikes, Lufthansa has announced that it has reached a binding long-term agreement with UFO, the union that represents most of Lufthansa’s cabin crew employees.

The new collective bargaining agreement (CBA) is in place until June 30, 2019 with further agreements that guarantee salary increases, employment guarantees, and pension enhancements beyond that date:

Cabin crew will receive a 1% raise on October 1, with an additional 2% raise on January 2018.

A shift in pensions programs from a defined benefit program to a defined contribution program.  This reduces fiscal liability to Lufthansa, who will contribute 5.2% of an employees salary annually towards their pension benefit.  Employees can still retire at age 55.

A conflict resolution process has been put in place through 2023.

Current cabin crew have employment guarantees through 2021.  Lufthansa will not be able to hire non-union cabin crew for Lufthansa Airlines until 2023.