German air navigation service provider DFS has signed a collective labour agreement with the GdF, the German air navigation services union.
Arndt Schoenemann, DFS CEO said, "With over 70 days of negotiations over two years, as well as exploratory talks and numerous working group meetings with the trade union, we have worked tirelessly to reach this agreement.
“Together, we are demonstrating that sensible and sustainable decisions are possible in turbulent times. Times that have seen war in Europe, military demands on airspace and the end of the biggest crisis in aviation due to Covid-19."
A total of eighteen collective agreements will be revised.
Highlights of the agreement include incremental pay increases of a nominal 20% over a term of more than four years from January 2023 to March 2027, roughly corresponding to the annual inflation rate. These rises were already negotiated in 2022 and will come into force now that the overall package that has been agreed.
The agreement also covers the conversion of the company pension scheme to a new, capital-market-financed system for new hires. This will reduce fluctuations in balance sheet provisions caused by changes in interest rate, and thus also the impact on air navigation services charges.
In addition, new regulations for air traffic controllers and other operational professions have been drawn up by experts from DFS and the GdF, for several operational job profiles beyond that of the air traffic controller.
In the future, controllers as well as operational technicians and engineers will be paid a higher final salary band. Newly recruited air traffic controllers will start in a lower remuneration group.
Given the large number of retirements and the associated current increase in recruitment levels, DFS believes this will lead to a reduction in costs.
"Compared to other, exceptionally high agreements in the aviation industry, we have collectively shown sound judgement. The pay rises are reasonable and justifiable," added Schoenemann. "Taken as a whole, all the measures paint a balanced picture. In these turbulent times, they are a symbol of stability and reliability. After all, this is what we are committed to in air traffic control."
In addition to the previously agreed pay rises, the measures will take effect from 1 January 2025.