Discover agrees with Verdi - criticism from VC pilots union
VC President Pinheiro criticized, "that now the tariffication is to be done with a trade union that has no support in the workforce, may seem simpler for the employer at first glance, but will not lead to a sustainable solution." Now it's the turn of the Pilot Union members: The VC will hold another ballot on demands for the collective agreement on working conditions and remuneration, he announced.
Verdi stated on Friday morning, however, that "after months of exploratory negotiations and a final sprint of talks, a collective agreement has been reached for both professional groups - both for cabin and cockpit personnel. "The result speaks for itself, as it is significantly higher than the demands raised publicly in recent months," explained Verdi negotiator Marvin Reschinsky.
In detail, the salaries of the around 500 cockpit employees, which were already increased at the beginning of the year, will be "secured by collective agreement" and will also increase by five percent annually. This means that the salary increase for cockpit employees will be "at least 15.7 percent," Verdi announced. Further income increases could have been achieved through additional step increases in the salary system.
"The salaries of the around 1400 cabin employees, who, unlike cockpit employees, did not receive a salary increase at the beginning of the year, will increase by 450 euros per month from 2024 onwards," Verdi further explained. In the following years, salaries will also increase by five percent annually. This results in "an achieved salary increase of 34.1 to 38.4 percent."
In addition to salary increases, employees of both professional groups will receive, among other things, annual special payments in the amount of one 13th salary, twelve additional free days per year, higher allowances, and fewer possible interventions by the company in their duty schedules.
According to the company, the collective agreements apply to the approximately 500 cockpit and 1400 cabin staff retroactively from 1 July to the end of 2027. The agreement with Verdi is "good news for our employees and our guests and marks, as the first collective agreement, an important milestone in the history of our young airline," explained Discover CEO Bernd Bauer.
"However, one should not overlook the fact that the agreement also comes with significant cost burdens and restrictions on our planning flexibility," he added. The company "has reached the limits of its economic performance capability." "However, by combining both professional groups in one collective agreement with Verdi, we also had a slightly larger room for financial maneuvering, because we avoided complexity in the system," explained Bauer.
Discover is the new leisure airline of the Lufthansa Group. The airline is headquartered in Frankfurt am Main, operates a fleet of 27 aircraft, and employs around 2000 people.
Employers might find it simpler at first glance to negotiate with a trade union that lacks support in the workforce, as mentioned by VC President Pinheiro, but this approach may not lead to a sustainable solution. In contrast, the recent collective agreement reached between Discover and Verdi, the Pilot Union, has resulted in significant salary increases for the airline's employees, demonstrating the importance of collaborating with well-supported unions.
