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Lufthansa ground staff agree pay deal in third round of talks

FRANKFURT (Reuters) Ground staff of Germanys Lufthansa and management reach a pay deal following a third round of negotiations, the Verdi labour union and the carrier said on Thursday.

The pay dispute led to a strike the other day, prompting the cancellation greater than 1,000 flights and increasing travel disruptions through the busy summer travel season.

Lufthansa still faces uncertainty over possible walkouts by its workers. The carrier is because of hold talks next with pilots, who’ve already voted towards strikes.

The pay deal announced Wednesday affects 20,000 employees, granting them raises in three steps. A 200 euro a monthly increase this season will be accompanied by two 2.5% increases next year.

Verdi originally demanded a 9.5% pay hike.

Earlier Thursday, Lufthansa said it expected demand for short-haul flights in Europe to operate a vehicle growth at its passenger airlines this season, forecasting a go back to group operating profit for the entire year.

(Reporting by Ilona Wissenbach; Writing by Tom Sims; Editing by Daniel Wallis)

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