KLM, the Dutch arm of Air France KLM AIRF.PA, and unions have come to a collective labour agreement after weeks of unrest, the Dutch airline has announced in a press release.
The agreement includes a two step pay increase totalling 4% for ground crew with a minimum monthly increase of 80 euros before tax in each phase to ensure that the financial position of those on lower incomes is strengthened.
"Sky-high inflation, declining purchasing power, high work pressure and the tight labour market are new circumstances to which KLM must respond", the airline said in a statement.
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KLM and Schiphol Airport, which serves as KLM's hub, have been unable to fill thousands of job openings since the COVID-19 pandemic.
Travel at Schiphol, Europe's third-busiest airport, has been disrupted frequently since April due to shortages of security workers and baggage handlers. Hundreds of flights have been cancelled, and long lines have become routine.
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