Airline agrees 8.7% pay hike for pilots

Pilots' first pay increase will be backdated to January 1, 2016 and the last is slated for January 1, 2019.

Lufthansa airplanes are parked at the Franz-Josef-Strauss airport, as pilots stayed away from work for a second straight day, forcing the airline to scrap 912 flights and grounding 115,000 more passengers on November 24, 2016

Pilots' first pay increase will be backdated to January 1, 2016 and the last is slated for January 1, 2019, while the agreement will remain valid until the end of that year, Lufthansa said in a statement.

Pilots will also receive a one-off bonus payment of between 5,000 and 6,000 euros under the deal, or "around half a month of salary" per person, pilots' union Cockpit noted in its own statement.

With around 5,400 pilots covered by Lufthansa's collective bargaining agreement, the pay hike will add some 85 million euros ($90 million) per year to the group's costs.

Pilots at Lufthansa, Lufthansa Cargo and low-cost subsidiary Germanwings are all included in the agreement.

The deal is "acceptable", Cockpit spokesman Markus Wahl said in the union's statement, but must still be approved by members in a vote.

Lufthansa and Cockpit turned to a mediator in December to unravel their intractable pay dispute.

Disruption from the pilots' latest strike in November cost the firm around 100 million euros -- the latest in a series of walkouts that Lufthansa says have inflicted some 351 million euros of costs in total since 2014.

While the airline said it was happy with the result, it warned that the additional expense meant the pilots of 40 new aircraft it is adding to its fleet would not be covered by the compromise.

Meanwhile, tough talks are still to come for the two sides as they tackle remaining thorny issues including pilots' pensions.

Lufthansa shares rose on news of the deal, adding 0.93 percent to trade at 12.97 euros in Frankfurt at 1350 GMT, outpacing 0.08 percent gains for the DAX index of leading German shares.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Amazing transformation of 21-year-old man bullied for being born different (video)

Amazing transformation of 21-year-old man bullied for being born different (video)

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

Abel Mutua's movie makes over Sh4M in 5 days

Abel Mutua's movie makes over Sh4M in 5 days

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

British MP claims she didn't know her flat was owned by the Kenyatta family

British MP claims she didn't know her flat was owned by the Kenyatta family

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

5 things you should never do to please a woman

5 things you should never do to please a woman

Mulamwah and girlfriend Sonie welcome a bouncing Baby Girl (Photo)

Mulamwah and girlfriend Sonie welcome a bouncing Baby Girl (Photo)