Germany's pilots union, Vereinigung Cockpit (VC), has decided to give Lufthansa extra time to resolve a long-running pension dispute, delaying a potential strike that could have disrupted thousands of flights.
In a letter to members dated Friday and obtained by Reuters on Saturday, VC said it would allow Lufthansa management "sufficient time" to present a new offer to settle the disagreement.
"For the time being, no industrial action is to be expected," the letter stated, though it did not specify how long the airline has to respond.
The decision provides a temporary relief for Germany's largest carrier, which has been locked in negotiations with the union since May.
At the heart of the conflict is the pilots' demand for higher employer contributions to company pension plans covering around 4,800 cockpit employees at Lufthansa and its cargo division, Lufthansa Cargo.
In late September, union members voted in favor of strike action after months of talks failed to yield progress.
Pilots Union Gives Lufthansa Extra Time on Pension Talks
The ballot reflected growing frustration among pilots who say their retirement benefits have not kept pace with inflation and increased workloads, EconoTimes rpeorted.
Lufthansa was able to avoid a strike at the time by reopening discussions with the union, but those additional meetings did not lead to an agreement.
By holding off on industrial action, VC appears to be offering Lufthansa one final chance to reach a deal before escalating the situation.
The union's move also suggests it wants to maintain good-faith negotiations rather than immediately disrupt operations.
For Lufthansa, the delay is a much-needed reprieve. The airline is still recovering from the financial strain caused by the COVID-19 pandemic and has been dealing with multiple labor disputes over pay and scheduling.
A strike by pilots could have affected both passenger flights and critical cargo routes, potentially costing the airline millions of euros in losses.
Industry analysts say Lufthansa's management now faces a delicate balancing act.