Lufthansa success for new union

Germany's newest and biggest union Ver.di has reached agreement on an above-inflation increase for 55,000 employees at the German airline Lufthansa. The 14-month deal, which was signed after warning strikes involving around 10,000 workers at the end of last month, provides for a 3.5% increase for the 12 months from 1 April 2001 and for the two months February and March employees receive lump sum payments of Euro127.55. Inflation in Germany is running at 2.5% March. Employees also get a one-off payment of Euro510.20, to be taken either as cash or in shares, plus 10% of one month's salary as part of a profit sharing arrangement.

This is the first major deal to be signed by Ver.di, which has around 3m members. Ver.di's largest area of membership is in public services, such as local government and the health sector, where, following a two-year deal, new negotiations are not due until 2002. The new president of Ver.di, Frank Bsirske, has, however, made it clear that he feels that negotiations last year resulted in pay increases which were too low.