DLAKY - Lufthansa reaches pay-rise agreement with pilots avoids further strikes

A dispute between German flagship carrier Lufthansa ( OTCQX:DLAKY ) and its pilots union came to a ceasefire on Monday.

Vereinigung Cockpit, the union representing the German pilots, acknowledged the two sides agreed upon terms to avoid a strike until the summer of 2023 as new increases in basic monthly pay were signed. The new terms allow for increases of €490 in basic pay, retroactive to August 1.

While not a final agreement, the union stated that the truce allows the side to “negotiate open issues without time pressure and within the framework of a peace obligation until June 30th, 2023.”

"This is to be seen as a positive signal towards the colleagues in the cockpit, the passengers and Lufthansa's future viability," union spokesman Matthias Baier said. "The collective agreements are still open, but the points to be negotiated can now be discussed in a confidential setting.”

Frankfurt-listed Lufthansa ( OTCQX:DLAKF ) shares rose 1.42% in the European afternoon session.

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