In a recent development within the airline industry, Discover Airlines, part of the Lufthansa Group, has successfully negotiated a wage agreement with the service union Verdi. This agreement has raised eyebrows among the pilots' union Cockpit VC, which expressed surprise and concern over the implications of the deal. VC President, Pinheiro, criticized the agreement, stating that collaborating with a union lacking substantial support among the workforce might not lead to a sustainable solution. As a result, the VC is considering further strikes to address their members' concerns regarding working conditions and compensation.
The agreement reached by Discover and Verdi covers approximately 500 cockpit employees and 1,400 cabin crew members. Verdi announced that the salaries of cockpit employees, who had already seen an increase earlier this year, will be secured by this new collective agreement. Their salaries will rise by 5% annually, resulting in a total increase of at least 15.7% over the agreement's duration. This significant raise aims to address the growing cost of living and retain talent within the company.
For cabin employees, who did not receive a pay increase at the beginning of the year, the agreement stipulates a monthly salary increase of €450 starting in 2024. This adjustment will further be complemented by annual raises of 5%, leading to a total salary increase ranging from 34.1% to 38.4% over the agreement period. These changes reflect a concerted effort to improve compensation for all staff members at Discover Airlines, enhancing the overall working conditions in the rapidly evolving airline sector.
In addition to salary increases, the agreement includes various benefits for employees from both professional groups. They will receive annual special payments equivalent to a 13th salary, twelve additional free days per year, increased allowances, and reduced company interventions in their duty schedules. These improvements are expected to boost morale and job satisfaction among Discover’s workforce, which is crucial for maintaining operational efficiency and customer service quality.
The collective agreements are retroactive from July 1st and will remain in effect until the end of 2027. Discover CEO Bernd Bauer heralded this agreement as a significant milestone in the airline’s history, emphasizing its importance for both employees and customers. However, he also acknowledged the challenges posed by the new wage structure, indicating that the company has reached the limits of its economic performance capability. The financial implications of the agreement could impact future planning and operational flexibility.
Despite the positive aspects of the agreement, the VC union has raised concerns about the long-term sustainability of such negotiations. They argue that while Discover may find it easier to negotiate with Verdi, the lack of support for Verdi among the workforce could lead to unresolved issues in the future. The VC is planning to hold another ballot to gauge its members' demands for a collective agreement that better addresses their needs.
Discover Airlines, headquartered in Frankfurt am Main, operates a fleet of 27 aircraft and employs around 2,000 people. The airline aims to establish itself as a key player in the leisure travel market within the Lufthansa Group. The recent wage agreement with Verdi marks a critical step in this journey, but the ongoing tension with the VC pilots' union highlights the complexities of labor relations in the airline industry. The outcome of these negotiations will be closely monitored as the airline navigates its future in a competitive landscape.
