Key facts
- Lufthansa and German pilots' union Vereinigung Cockpit (VC) have agreed to a framework for resolving labor disputes through arbitration and mediation.
- The agreement covers Lufthansa's core airline, Lufthansa Cargo, CityLine, and Eurowings.
- The framework aims to address issues including pilots' pensions and other contract terms.
- Previous strikes in April disrupted travel and cost Lufthansa nearly 200 million euros in the first half of the year.
- The union has the option to exit the process if objectives are not met.
Lufthansa and its German pilots' union, Vereinigung Cockpit (VC), have reached an agreement in principle to establish a framework for resolving ongoing labor disputes through arbitration and mediation. This development significantly reduces the immediate risk of further pilot strikes that have previously disrupted operations and incurred substantial costs for the airline.
The agreed-upon framework will apply to Lufthansa's core airline, Lufthansa Cargo, CityLine, and Eurowings. Mediation will also be employed to address broader issues affecting the relationship between the carrier and the union. This move comes after a series of labor disputes, particularly concerning pilots' pensions and other contract-related matters, led to six consecutive days of strikes in April. These strikes impacted hundreds of thousands of passengers and cost the Lufthansa Group approximately 200 million euros in the first half of the year.
VC confirmed that the agreement includes exit clauses for both parties, allowing them to withdraw from the process if its objectives are not met. The union had previously granted Lufthansa additional time to present a new offer regarding pension contributions, which cover around 4,800 cockpit employees. Despite ongoing negotiations since May, a breakthrough had not yet been achieved, leading to a vote in favor of potential strike action by VC members. The current agreement provides a temporary reprieve for Lufthansa, which is still navigating labor tensions amidst rising inflation and demands for improved working conditions.