Lufthansa and the ver.di trade union have agreed an increase in pay for around 30,000 ground staff in its MRO, cargo and IT divisions.
As part of the agreement, which also includes a reform of the company pension scheme, a one-off payment to staff of €2,250 was agreed from April to December 2015.
Lufthansa said apprentices working in the airline’s ground operations will receive a payment of €600 ($635).
In 2016 and 2017, the salary for employees and apprentices will increase by 2.2 per cent on the January 1 each year.
The collective bargaining agreement will expire at the end of 2017.
However, Lufthansa remains at loggerheads over salary and retirement benefits with pilots and cabin crew.