Lufthansa and the German trade union ver.di entered into a collective labour agreement regarding pension scheme and remuneration

• One-off payment in the amount of 2,250 euros for 2015, 600 euros for apprentices

• In 2016 and 2017, increases in remunerations of 2.2 per cent each year

• Introduction of an attractive DC system for new employees

• A reformed pension scheme for current staff members

Lufthansa and the German trade union ver.di agreed on an increase in remunerations for about 30,000 staff members from Lufthansa, Lufthansa Cargo, Lufthansa Technik and LSG Sky Chefs. As part of a comprehensive package, they also entered into a fundamentally reformed collective labour agreement regarding the corporate pension scheme.

Remuneration

From April 2015 up until December 2015, a one-off payment amounting to 2,250 euros has been agreed. Apprentices will receive a one-off payment amounting to 600 euros. In 2016 and 2017, the remuneration for employees and apprentices will increase by 2.2 per cent on the 1st January each year.

“With this one-off payment our employees will benefit from this year’s anticipated good corporate results. The 33-month term from 1st April 2015 up until 31st December 2017 will create planning security and harmony between the bargaining parties,” said Dr Bettina Volkens, Member of the Executive Board and Corporate Chief Officer for Human Resources and Legal Affairs of the Deutsche Lufthansa AG.

Corporate Pension Scheme

For newly recruited staff as of the 1st January 2016, they succeeded in agreeing on a pension scheme within a Defined Contribution Model. Lufthansa will pay an employer’s contribution amounting to 5.2 per cent of the salary, and in addition, the employees will contribute a co-payment of one per cent.

Furthermore, Lufthansa and ver.di have agreed that employees, who have been or will be hired up to the 31st December 2015, will have the opportunity to stay within a modified Defined Benefit System which offers Defined Contribution Elements which are new for all employees. With an additional co-payment of one per cent contributed by the employees, the current level of the company pension can also be achieved in the future.

“I am glad that we can continue to offer an appropriate pension scheme to our employees with this agreement. At the same time, we are able to reduce our risks and costs regarding the pension scheme on a long-term basis due to this new collective labour agreement”, stressed Dr Volkens. “In cooperation with ver.di we succeeded in agreeing on a comprehensive collective labour agreement package for our biggest staff group which represents a fair compromise between the interests of the employees and the necessity to enter into more competitive cost structures”, continued Dr Volkens.

The bargaining parties have agreed on a cooling-off period.

Deutsche Lufthansa AG, Media Relations Lufthansa Group, 28.11.15