Lufthansa and union reach agreement in ground staff wage dispute

German airline Lufthansa and the powerful verdi trade union have reached an agreement in their dispute over pay and working conditions for ground staff, just in time to avert industrial action over the busy Easter period.

After successful arbitration, Lufthansa and verdi have agreed on the basic principles of a collective bargaining agreement for around 25,000 employees, they announced in Frankfurt late Wednesday.

"We are very satisfied with the outcome of the arbitration," said verdi negotiator Marvin Reschinsky.

Michael Niggemann, Lufthansa's human resources director, said the airline was also very satisfied. "But there are major investments ahead of us," he added. The agreed salary increases would result in additional costs.

Details should be available on Thursday.

Verdi demanded 12.5% more pay for Lufthansa ground staff for a 12-month term, while the company had so far offered 10% for a 28-month period. An inflation compensation bonus of €3,000 ($3,262) is not contested.

Recently, hundreds of Lufthansa flights were cancelled due to strikes organized by verdi's ground employee members.