Lufthansa says it strikes deal with cabin crew unions

FRANKFURT (Reuters) – German airline group Lufthansa (DE:LHAG) on Thursday said it had struck a cost saving deal with unions representing German cabin crew that would reap more than 500 million euros in savings.

Lufthansa said the cost saving measures agreed with UFO included steps to stop pay rises, cut working hours, and a cap on pension contributions.

In addition unions and the airline have reached agreement over the terms of temporary severance packages, Lufthansa said on Thursday.

The pact comes as Lufthansa shareholders prepare to discuss a 9-billion-euro government bailout at the company’s extraordinary general meeting on Thursday.