Lufthansa and Verdi labor union reached a wage deal on Wednesday for ground staff at German airports

• German Lufthansa and a union representing ground staff said Wednesday they had reached an agreement on pay after a lengthy dispute, averting the threat of Easter holiday strikes.
• The deal between the carrier and the powerful Verdi union came after ground staff said Wednesday they had reached an agreement on pay after a lengthy dispute, averting the threat of Easter holiday strikes.
• The Verdi union had been demanding a pay rise of at least 12.5% for its members, who include engineers, baggage handlers, check-in staff, and gate agents, as well as an inflation-busting one-off payment of €3,000.

The German carrier Lufthansa and Verdi labor union reached a wage deal on Wednesday for ground staff at German airports, averting potential Easter holiday strikes.

Both the sides have been taking part in make-or-break negotiations all week with the help of an independent arbitrator as part of a last-ditch attempt to avoid a longer strike by as many as 25,000 employees.

Verdi had been demanding a 12.5% wage increase for about 25,000 ground workers, in addition to an inflation compensation bonus of €3,000 ($3,250), while the airline had only been offering 10%.

The strike action is believed to have cost Lufthansa at least €250 million since the start of 2024, as the negotiation failures had led to a series of so-called ‘warning strikes’ in which ground workers held 24-48 hour long walkouts with little notice.

More details on the deal are expected on Thursday, but chief union negotiator Marvin Reschinsky said: "We are very satisfied with result of the mediation." Lufthansa says 'good compromise' achieved.

Lufthansa human resources director Michael Niggemann said the airline was also satisfied with a "good compromise with substantial wage increases," but warned that "big investments lie ahead of us."

After months of disruptions due to the strike action at German airports that saw the mass cancellation of flights, the two sides had been locked in behind-closed-doors negotiations since Monday, moderated by the Thuringia State Premier Bodo Ramelow and head of the Federal Employment Agency Frank-Jürgen Weise.

The aim of the mediation was to avert strike disruption over the four-day Easter holiday this weekend.

It's a coincidence that the agreement comes after Germany's rail operator Deutsche Bahn reached a pay and conditions deal with train driver's union GDL,averting further strikes in the railway sector.   

Lufthansa has also been actively negotiating with the UFO all week, but no agreement has yet been reached. The union said on Wednesday that Lufthansa is refusing to concede “comparatively small details” which is “incomprehensible in the overall context”.

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