Lufthansa budget travel subsidiary Eurowings announced on Friday that it had averted a strike by ground staff at Palma airport on Mallorca, a destination highly popular with German holidaymakers.
An agreement had been struck with subsidiary Wings Handling, the company said from its Cologne headquarters.
Under the deal, which is set to run for two years, conditions for workers and the competitiveness of the company had been taken into account, Eurowings said.
The GVA union had called for strike action from Monday that would have impacted hundreds of flights between Germany and Mallorca. Eurowings agreed to convert part-time contracts and additional holiday in the summer.
Eurowings operates by far the most connections between Germany and Mallorca.