Lufthansa has agreed a compensation package with 30,000 ground staff, avoiding further strike action that has dogged the airline for the past couple of years.
The German carrier said it will make a one-off payment of €2,250 to each employee with a 2.2 per cent rise.
As part of the deal struck with union group Verdi, workers have also entered into a "fundamentally reformed" collective labour agreement regarding the corporate pension scheme.
The deal covers Lufthansa airport staff as well as catering, IT, freight and maintenance workers.
However, Lufthansa is also embroiled in a dispute with cabin crew (see news, November 25) and will meet with representatives of the UFO union on Wednesday.
For newly recruited staff as of January 1 next year, the union succeeded in agreeing on a pension scheme within a Defined Contribution Model. Lufthansa will pay an employer's contribution amounting to 5.2 per cent of the salary, and in addition, the employees will contribute a co-payment of one per cent.
Volkens added: "I am glad that we can continue to offer an appropriate pension scheme to our employees with this agreement. At the same time, we are able to reduce our risks and costs regarding the pension scheme on a long-term basis due to this new collective labour agreement."