Lufthansa says made new pay offer to pilots

Deutsche Lufthansa AG (LHA.XE) announced Wednesday that it has made a new offer to pilots in a bid to resolve a long-running wage and pension dispute.

Lufthansa said it offered some 5,400 pilots a pay increase of 4.4% in two stages, and also proposed a one-time payment equal to almost two months of pay. Lufthansa also made a new proposal on pilots’ pensions and retirement plans, which have been a sticking point in talks.

A spokesman for the pilots’ union, Vereinigung Cockpit, said the group would look at the offer, but was concerned it contained drawbacks.

Talks between the parties ended last week without result.

Over the past two years, unresolved issues related to pilots’ pay and retirement have triggered numerous strikes and added costs for the German airline.

Lufthansa said on Wednesday that the proposal should serve as new starting point for negotiations.

Source: MarketWatch