Lufthansa announced earlier today that it has entered into an agreement with the union representing their flight attendants to end their labor disagreement that has lasted for several months.

The new agreement with UFO, which represents the majority of Lufthansa’s cabin crew, takes effect January 1, 2013 and lasts through December 2014.

Highlights of the new deal include pay raises for cabin crew of 3.95% along with an additional one time €320 payment. Both sides also agreed to a new pay scale structure as well as enhancements to productivity metrics. Lufthansa will also create opportunities for new employees that only wish to work during peak seasons.

Additionally, a major component of the settlement involved assurances that cabin crew voluntarily transitioning to the “new” Germanwings which will consolidate most of Lufthansa’s Intra-European and domestic German routes into one low-cost-carrier (LCC) beginning next year. Those individuals volunteering to move to this new structure have assurances that their current pay and benefits will be protected.

According to Lufthansa Board Member Peter Gruber, who headed negotiations for Lufthansa, ““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.”

As contentious as the relationship between Lufthansa and UFO has been recently, it’s a relief to see that cooler and mature heads prevailed. We can now look forward to travel on Lufthansa for the foreseeable future without the threat of surprise work stoppages.

German Airlines Board Member Peter Gerber, who headed the Lufthansa negotiating
commission, said:

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