The German aviation industry is facing its next major wage dispute: The Verdi union has officially presented its demands for the upcoming round of negotiations for Lufthansa's more than 20.000 ground staff employees. The main demands include a six percent wage increase or, alternatively, at least €250 more per month.
Given the ongoing cost pressures and the ongoing "turnaround" restructuring program at Lufthansa, a contentious dispute is looming. The wage dispute affects employees at approximately 25 companies across the core brands Lufthansa Airlines, Lufthansa Technik, and Lufthansa Cargo. The union is basing its demands not only on the increased cost of living but also on the need to adjust lower salaries in technical fields compared to competitors.
Protection of staff against outsourcing and wage cuts
Beyond its wage demands, Verdi is placing a clear focus on protection against job cuts and the outsourcing of tasks to subsidiaries operating under lower-paying collective bargaining agreements. Chief negotiator Marvin Reschinsky emphasized that the union intends to secure protection against outsourcing in order to mitigate the negative effects of the company-wide "Turnaround" cost-cutting program.
A particular flashpoint is the Munich hub, where passenger handling staff were slated to transfer to a new Lufthansa-acquired company with pay scales 20 percent lower than their previous levels . Christiane Mindermann, who works in this sector in Munich, described the resulting strain on morale and the employees' fears for their livelihoods , as they worry they will no longer be able to afford the high rents in the Munich area. This demand aims to uphold the principle of equal pay for equal work within the group and prevent a race to the bottom in wages.
Experience from the conflict-ridden previous year
The upcoming negotiations are overshadowed by the turbulent events of the last round of wage talks. At that time, an agreement for ground staff was only reached after lengthy mediation. Prior to that, several days of strikes at the beginning of 2024 had led to massive flight cancellations and significant financial burdens for Lufthansa. However, the union also sees these strikes as a successful means of addressing staff shortages after the COVID-19 pandemic by offering more attractive working conditions and salaries.
Looking ahead to the next round of negotiations, union representative Reschinsky signaled his hope for a solution without renewed industrial action: "We will do everything necessary to ensure that this time, hopefully, it can be achieved without industrial action." However, he added a cautionary note, stating that Lufthansa would be well advised to adopt a different negotiating style than in the contentious last round and to continue investing in personnel to ensure stable flight operations. The no-strike agreement, which prohibits warning strikes, expires in mid-February 2026. The first round of negotiations is scheduled for January 19, 2026.
Hardened fronts also among the pilots.
Parallel to the looming conflict with Verdi, the wage dispute with the pilots' union Vereinigung Cockpit (VC) remains deadlocked. This dispute centers on VC's demand for higher contributions from Lufthansa to the company pension scheme for the approximately 4800 cockpit crew members.
Internal circulars from the VC's collective bargaining commission confirm that Lufthansa has not yet submitted an offer regarding company pension schemes. Lufthansa CEO Jens Ritter had instead called on the VC to withdraw its demands. In return, he promised that the short-haul fleet would not be further reduced . The VC rejected this proposal, however, stating that similar commitments had not been honored in the past.
The VC remains firm on this issue: "In this situation, Lufthansa shouldn't complain if we strike to enforce our interests regarding company pension schemes." Since a membership vote at the end of September, the pilots' union has the right to call for a strike at any time , which further intensifies the threat to the entire company.
Challenges for the entire Lufthansa Group
The Lufthansa Group, which has seen a strong recovery in passenger numbers and business operations in recent quarters, now faces massive demands on two key negotiating fronts. Management must perform a difficult balancing act: On the one hand, it must meet wage demands to ensure staff motivation and availability, especially given ongoing staff shortages in key areas. On the other hand, the group is under pressure from shareholders and the financial markets , who expect the continuation of the cost-cutting program and adherence to margin targets.
The internal conflict surrounding the outsourcing to lower-wage companies reflects management's ongoing efforts to make cost structures more flexible and optimize them. However, such strategies, also observed at other major European carriers, regularly encounter fierce resistance from unions, which fear a fragmentation of the workforce and a weakening of their bargaining power.
Negotiations with Verdi and VC will therefore be a crucial test of Lufthansa management's ability to strike a balance between cost efficiency and maintaining industrial peace. Repeated strikes, particularly among ground staff and cabin crew, have not only caused significant reputational damage in the past but have also impacted the operational stability of Germany's vital air traffic hub. An escalation on either front could significantly jeopardize Lufthansa's continued recovery and ambitious growth plans. The industry is watching the negotiations in January and February with great interest.