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Arbitrator: Lufthansa reaches agreement with union

Tuesday - 11/13/2012, 8:44am  ET

BERLIN (AP) -- The arbitrator in a wage dispute between Germany's biggest airline Lufthansa and its flight attendants says the two sides have reached a deal that averts the possibility of widespread strikes during the holiday season.

Arbitrator Bert Ruerup said details of the deal would be announced Tuesday.

The UFO union was pushing for a 5 percent wage increase over 12 months for 19,000 cabin personnel, while the airline was offering 3.5 percent over 36 months.

The union also objected to plans such as outsourcing some jobs and employing temporary cabin crews as Deutsche Lufthansa AG attempts to become more competitive against European budget carriers and government-owned airlines from the Persian Gulf.

Ruerup was called in to arbitrate in September after limited strikes caused hundreds of flight cancellations that cost Lufthansa millions.

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