Fare increases and improvements at Lufthansa City Airlines

6 min.

Introduction to the collective bargaining agreement at Lufthansa City Airlines

In 2023, Lufthansa City Airlines was founded, a new airline that quickly became a major player in air travel. Through intensive collective bargaining, the ver.di union successfully secured a collective agreement for the airline and, at the same time, achieved substantial salary increases for cockpit and cabin crew. These agreements represent a fundamental improvement in the financial and organizational conditions for employees and are intended to shape working life in the long term.

This collective bargaining agreement is a milestone, as it not only raises the wage and salary structures for flight crew to a new level, but also includes a range of social and operational improvements. These affect captains, co-pilots, and cabin crew alike. The agreement therefore sends a significant signal of recognition for the work performed in the aviation industry and simultaneously addresses the challenges of a rapidly growing company.

Structure and content of salary increases

The salary increases achieved at Lufthansa City Airlines are differentiated and carefully structured. The base salaries of the various professional groups in the cockpit and cabin crew will be raised in three clearly defined steps. These increases range between 20 and 35 percent, representing a significant upgrade in compensation. This staggered approach to salary increases allows for predictable and steady income growth over several years.

In addition to raising base salaries, further financial improvements were implemented. The compensation system was expanded with additional salary increase levels, thus better reflecting experience- and performance-based bonuses. Tax-free allowances were increased, resulting in a noticeable net increase in income, while other allowances were raised to address specific burdens and particularities of daily work.

A key innovation is the introduction of profit sharing, allowing employees to directly participate in the company’s financial success. Additionally, the intervals between salary adjustments have been shortened, meaning employees will benefit from more regular earnings increases. Furthermore, a special bonus payment equivalent to half a month’s salary is planned for 2027, intended as a special recognition of the workforce’s commitment.

Improvements in working conditions and company social benefits

Beyond the financial aspects, a number of improvements to the working conditions of flight crews were also agreed upon. These include the introduction of an additional day off per month, which significantly increases employee recovery time and contributes to a better work-life balance. Furthermore, employees are now entitled to two additional vacation days per year, which also serves their regeneration needs.

The company, on the other hand, has committed to reducing interventions in work schedules, which allows for more stable and reliable planning. Improved vacation planning options and consideration of personal leisure time preferences significantly boost job satisfaction. Another focus is on expanding part-time options, which allow for flexibility and individual customization of work models.

Furthermore, sick pay was introduced to mitigate financial losses due to illness, and additional regulations were implemented to reduce workload and stabilize work schedules. These measures help to reduce the burden on employees and improve the balance between work and rest.

A fundamental component of the collective bargaining agreement is the agreement on company pension schemes. Here, the company will provide an employer contribution of five percent of individual salary, thus strengthening financial security in retirement. This package is rounded off by a collective agreement on employee representation, which regulates co-determination within the company and thus grants employees greater influence over corporate decisions.

Long-term significance and outlook

The collective bargaining agreement at Lufthansa City Airlines is groundbreaking for the design of employment relationships in the aviation industry. It demonstrates how constructive negotiations between unions and employers can establish socially responsible and future-proof standards, even in an expanding company. The salary increases, combined with improved benefits and working conditions, not only boost the motivation and satisfaction of flight crews but also make the company more attractive to qualified professionals.

The planned salary increases and additional compensation elements represent a sustainable investment in the workforce. These measures have a positive impact on employee retention and help secure the necessary skilled workforce in a highly competitive environment. Furthermore, the agreed-upon regulations regarding part-time work, vacation, and shift schedule stability improve the quality of life for employees and promote a healthier work-life balance.

Of particular note is the agreement on company pension schemes, which represents a significant future provision for flight crews. Furthermore, the newly negotiated collective bargaining agreement on employee representation grants employees greater participation rights, improving communication between staff and management and contributing to a positive working environment.

In conclusion, the progress achieved at Lufthansa City Airlines serves as an exemplary model for sound collective bargaining policies and sustainable human resources management. In an industry facing intense competition and high demands on employees, these changes provide crucial impetus for the recognition and appreciation of professional achievements.

Conclusion

Negotiations between ver.di and Lufthansa City Airlines have resulted in comprehensive improvements for cockpit and cabin crew. With salary increases of 20 to 35 percent, the airline is clearly committed to fair compensation for its flight personnel. In addition to the financial aspect, a collective bargaining agreement has been introduced, offering employees long-term security and planning prospects.

Furthermore, the increase in vacation days, more days off per month, and improved shift scheduling are among the important achievements that significantly improve the working environment. Expanding part-time options and introducing supplemental sick pay help employees better cope with the demands of daily work.

The agreement on company pension schemes creates a solid foundation for financial security after working life, while the regulations on employee representation strengthen employee participation in decision-making processes. The combination of these elements makes the collective bargaining agreement a significant step towards modern and fair working conditions at the growing airline.

Overall, this collective bargaining agreement underscores the commitment of Lufthansa City Airlines and ver.di to promoting sustainable and socially balanced development that meets both the company’s requirements and the needs of its employees. This sends an important signal to the entire aviation industry and serves as a good example for future collective bargaining and personnel development.

More about ver.di

ver.di - United Services Union

Organization

Lufthansa and ver.di: Basic salaries increased by 4.65 percent

Christian Lechner
Christian Lechner
A specialist journalist in the aviation sector with 20 years of experience, a licensed pilot, and publisher of Luftfahrtmagazin.de. He delivers precise analyses, exciting background reports, and inspiring insights into the aviation industry – always with a focus on innovation and quality.

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