Lufthansa City Airlines is working through a labour dispute after delays in applying agreed pay increases and tariff measures for cockpit and cabin crew. Verdi has accused the Lufthansa unit of falling into payment arrears, while the company maintains that implementation is proceeding on schedule. August payroll, due on Monday, is expected to include retroactive changes back to April, which would settle accumulated claims.
The April tariff settlement covered pilots and cabin staff, but payroll and crew-planning adjustments have proved technically complex and may continue into the third quarter. Ufo, the rival cabin union, criticised the handling and argued that the employer remains responsible for carrying out the agreed arrangements fully and correctly. A separate part-time collective agreement is close to completion, and City Airlines expects part-time vacancies for 2027 to open before the end of the month.
The issue comes as Lufthansa’s relatively new City Airlines unit continues to expand around the Frankfurt and Munich hubs, while still building out the systems needed to support collective agreements and staff scheduling.