The salaries of ground staff at German airline Lufthansa are set to increase by up to 18% after an agreement was reached in a running collective bargaining dispute.
Employees will receive more pay in two stages over a period of 24 months, Lufthansa and the powerful verdi trade union said in Frankfurt on Thursday.
In addition, an inflation compensation bonus of €3,000 ($3,247) and other allowances will be paid.
The agreement - initially announced late Wednesday - was reached with the help of a three-day mediation led by the eastern state of Thuringia's Premier Bodo Ramelow and the former head of the Federal Employment Agency, Frank-Jürgen Weise.
The wage agreement came just in time to avert industrial action over the busy Easter period.
According to Lufthansa, the average increase in salaries by the end of next year will be 12.5%. Lower and middle wage groups are raised above average using base amounts.
This also contributes to Lufthansa remaining an attractive employer, the airline's human resources director, Michael Niggemann, said.
Recently, hundreds of Lufthansa flights were cancelled due to strikes organized by verdi's ground employee members.
