German airline Deutsche Lufthansa has agreed a framework with its trade union that makes working times and pay talks more flexible to cut labour costs, sources said today.
Lufthansa representatives and the Verdi union signed the framework agreement, a copy of which was obtained by Reuters, on Friday night and aim to translate it into a full-wage contract by August 15th, the sources said.
"That's the basis on which we are negotiating now," one source close to the union said. "Of course, the devil is still in the detail."
Under the deal, 40,000 German ground staff would still work 37.5 hours per week, throwing out plans by Lufthansa Chief Executive Mr Wolfgang Mayrhuber to increase the working week to 40 hours.
But the 37.5 hours per week would be averaged out over 18 months, allowing for individual longer working weeks without costly overtime payments, the sources said.
Under the current regime, overtime has to be paid every week in which working time exceeds 37.5 hours.
The agreement also aims for a new tariff structure under which separate Lufthansa business units would be able to reach their own pay deals rather than be bound by a single deal for the group, they said.