Lufthansa reaches deal with cabin staff, expects €40 million savings

Lufthansa and the UFO union representing 14,000 cabin staff reached a four-year pay deal that includes a no-layoff guarantee through Dec. 31, 2008, in return for increased flexibility and productivity, the airline said in a statement yesterday. The agreement also includes a pay freeze until the end of 2006. However, from Jan. 1, 2007, salaries will be raised by at least 2.5% but by no more than the average wage settlement in western Germany. Staff will receive an "inflationary ...