Germany's flagship carrier Lufthansa and the country's service workers' union Ver.di reached an agreement Thursday that increases the monthly basic salaries of 20,000 ground staff.
"This is a good result, which means a monthly increase of at least 377 euros up to 498 euros across all employee groups," the union's statement said, citing deputy Ver.di chairwoman and negotiator Christine Behle.
Lufthansa's Chief Human Resources Officer Michael Niggemann welcomed the development.
"We are pleased that we were able to find a good solution for our employees," he said.
Last week, nearly 20,000 Lufthansa employees went on strike demanding a pay raise due to soaring inflation and the rising cost of living in Germany.
The one-day strike affected more than 134,000 passengers, according to Lufthansa.