Lufthansa makes agreement with Verdi union

Airline Industry Information, Oct 6, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Germany's Lufthansa and the Verdi union have reached an agreement that affects 12,000 ground staff.

The airline and staff representatives reportedly agreed on a new pay system that is expected to lower the airline's costs and give workers a job guarantee that lasts until 31 March 2009. The airline also agreed not to shut down ground handling at any German airports outside Frankfurt and Munich before 31 December 2006, Reuters reported.

Last month Lufthansa said its costs for ground handling services were a third higher than those of its competitors.

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