Workplace Report February 2012

European news

Lufthansa pay lift-off

The German services union Verdi and the airline Lufthansa have reached agreement on pay increases for around 33,000 of the company’s ground staff. However, not all groups of employees on the ground will get the same increase and the cabin crew have not yet settled.

The majority of the ground staff, around 28,000, will get a 3.5% increase, back-dated to 1 January. The deal runs for 13 months and it also includes an increase of around 5% in the annual holiday bonus, which is increased to €1,075. This is well above inflation which is currently 2.0% (January).

However, the 5,000 employed in Lufthansa’s catering business LSG will only receive a lump sum payment of €250 (at least €100 for part-time employees). They will, however, be covered by a job security agreement, which the union considers a good result, in the light of the difficult situation of the business.

The 17,000 cabin crew, who are represented by a smaller union, UFO, which does not belong to the main union confederation, are not covered by the deal.

UFO is concerned at the company’s attempt to limit promotion opportunities for cabin crew and is likely to be presenting is own demands in March.

The euro was worth 83p on 2 February