Lufthansa Group and Vereinigung Cockpit Sign Long-term Collective Agreement
Lufthansa Group and Vereinigung Cockpit, the pilots’ union, have agreed on long-term collective pay and terms of employment. This pact applies to the pilots of Lufthansa Airline and Lufthansa Cargo.
The agreement says pilots will get an 18% pay raise over 3.5 years, plus better working conditions. The VTV for pay agreement will remain in effect until December 31, 2026, while the MTV agreement for terms of employment extends until December 31, 2027.
“This new collective agreement provides additional operational stability, reliability for customers and a sound planning foundation for Lufthansa Airline for the years ahead.”Michael Niggemann, member of the Lufthansa Group Executive Board and Labor Director.
Details of the Agreement
The Vereinigung Cockpit (VC) union members have endorsed the proposal negotiated between the Lufthansa Group and the VC. This approval covers approximately 5,200 pilots from Lufthansa Airline and Lufthansa Cargo for VTV and MTV.
The VTV and MTV will be in force until December 31, 2026 and December 31, 2027, respectively, and both will require the maintenance of industrial peace throughout their term.
The key elements of the new agreement comprise:
- Salary increases (including interest effects) of over 18%, with 7% due on December 1, 2023, 5% on January 1, 2025, and 5% on January 1, 2026
- A one-time payment of 3.75% of fixed annual compensation, capped at a maximum of 3,000 euros, in 2023
- Improved variable compensation tied to business success
- Increased leisure time and roster stability for pilots, including a minimum of ten free days each month
- Further growth enabled by incorporating former Germanwings pilots into Lufthansa Airline
The VTV and MTV agreements remain subject to final editorial approval and the endorsement of relevant bodies.
Impact of the Agreement
“With [this agreement] we are improving not only our pilots’ remuneration but also their ability to maintain an effective balance between their profession and their private lives,” says Niggemann.
Niggemann further elaborates on the financial implications of the agreement, “This new agreement is not easy for us to conclude from an economic perspective. But its long-term nature provides Lufthansa Airline with a sound planning foundation for the years ahead, particularly for its intended long-haul growth. The fact that the new agreement was found amicably around the negotiating table strengthens our social partnership, too.”