Lufthansa is once again the focus of collective bargaining disputes. The pilots' union Vereinigung Cockpit has invited the company's management to talks to resolve the ongoing wage disputes.
In a statement dated March 17, 2025, Andreas Pinheiro, president of the union, stated that it was urgently necessary to reach an agreement to provide the crews involved and the airlines with the necessary planning security in the coming months. The meeting, to which Lufthansa management has been invited for March 31, 2025, could represent a decisive step toward resolving the outstanding issues in the collective bargaining area.
The talks are intended to address a number of unresolved collective bargaining issues at Lufthansa, particularly affecting pilots. Pinheiro emphasized that a quick agreement is necessary to stabilize the airline group and its employees in the long term. Such a breakthrough, according to the union, is necessary to manage the various flight operations operated by Lufthansa economically successfully and efficiently.
Background to the collective bargaining conflicts
The collective bargaining disputes between Lufthansa and the pilots' union Vereinigung Cockpit are nothing new. Tensions arose repeatedly last year as Lufthansa reached differing agreements with the cabin crew unions, represented by Vereinigung Cockpit and the UFO union. Of particular note is the agreement reached with the flight attendants in April 2024, which secured salary increases and thus a long-term collective bargaining agreement until the end of 2026. This provided relief for the core Lufthansa brand, as no further conflicts with the flight attendants regarding cabin crew are expected until the expiration of this collective agreement.
In contrast, the pilot collective bargaining agreement expires at the end of 2026. Pilot representatives are already pushing for a resolution of the outstanding issues to address not only financial aspects but also structural challenges such as retirement and transitional benefits. Lufthansa has also announced an efficiency program called "Turnaround," which will impact all areas of the company – including pilots. They could be asked to contribute to the implementation of the program, which could further burden the collective bargaining negotiations.
The invitation to the talks
A meeting between the pilots' union and Lufthansa management is now scheduled for March 31, 2025. Among those invited are Michael Niggemann, Lufthansa's Chief Human Resources Officer, and Jens Ritter, CEO of Lufthansa Airlines. Fabian Schmidt, Head of Lufthansa Cityline, and Frank Bauer, CEO of the cargo airline Lufthansa Cargo, will also participate in the negotiations.
"We are ready for a constructive dialogue," Pinheiro said in his statement, "but we expect Lufthansa to come to the table with a serious willingness to talk." The union made it clear that it is interested in a solution that is acceptable to both sides, while also prioritizing the interests of the pilots. It remains to be seen to what extent management will respond to these demands.
Significance of the conversation for Lufthansa
The talks are crucial for Lufthansa, as the airline faces a number of economic and structural hurdles following last year's financial challenges. In 2024, the company recorded a drastic decline in profits, partly due to high costs and lower ticket prices. The strikes at the Lufthansa subsidiary Discover also placed additional strain on management. These strikes were organized by the VC and UFO unions to enforce their own collective bargaining agreements. Lufthansa had previously reached an agreement with its rival union Verdi, which led to tensions within its own ranks.
The entire Group's operating profit fell by more than one billion euros in 2024, amounting to approximately 1,65 billion euros, representing a severe setback for the company. Lufthansa's Executive Board is aiming for a "significant improvement" for 2025, but this requires a rapid and satisfactory resolution of the outstanding tariff issues. Another year of unresolved disputes could undermine confidence in the airline and lead to further economic losses.
Impact on the entire industry
The negotiations between the pilots' union and Lufthansa will not only be important for the company itself, but could also have repercussions for the entire aviation industry. As one of the largest airlines in Europe, Lufthansa occupies a key position that extends far beyond the company's borders. A successful collective bargaining agreement could be seen as a signal to other airlines to find similar solutions to their own collective bargaining issues. Conversely, a failure of the talks could lead to a renewed outbreak of industrial action and strikes, which could cause long-term damage to both operations and the airline's image.
The planned talks between Lufthansa and the pilots' union Vereinigung Cockpit on March 31, 2025, are a crucial moment for the company. They are not only about resolving current wage issues, but also about the future of Lufthansa as one of the leading aviation companies in Europe.
Given the financial difficulties and ongoing conflicts within the company, much is at stake. The Vereinigung Cockpit union has signaled its willingness to engage in constructive dialogue, while Lufthansa is pursuing the goal of implementing the necessary efficiency improvements without jeopardizing the cohesion and satisfaction of its employees.