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Lufthansa, pilots reach breakthrough deal

dpa logodpa 15/03/2017

German airline Lufthansa has reached a preliminary agreement on a wage-and-pension deal.

German airline Lufthansa and pilots' union Vereinigung Cockpit have agreed to bring to an end a bitter five-year dispute which caused widespread disruption to the carrier's services through strikes.

The wage-and-pension deal calls for staggered wage increases of 11.4 per cent and a one-time payment of 1.8 monthly salaries for the period from May 2012 until June 2022.

Wednesday's agreement comes in the wake of 14 rounds of strikes launched by Vereinigung Cockpit since 2012 in support of their claim for a 22-per-cent increase over a five-year period for its members.

The long-running pilots' industrial action cost the airline 500 million euros ($A700.3 million).

The breakthrough agreement is also to replace an accord reached in February during mediation, Lufthansa said.

The agreement covers pilots employed at Lufthansa Airlines as well as its Cargo operations and Germanwings budget offshoot.

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