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Langen, 1 February 2007 Labour dispute at DFS resolved Arbitration procedure was successful The labour dispute at DFS Deutsche Flugsicherung GmbH has been settled. Today DFS and the air navigation services union (GdF) confirmed the terms of the agreement made last week. All DFS employees will receive a three-percent salary increase, backdating to 1 November 2006. In the second year of the 24-month term of the agreement, the staff will also receive a three-percent pay rise. In addition, all administrative staff will receive a one-time payment amounting to € 3,000. Operational staff, i.e. air traffic controllers, flight data specialists and technicians, will receive one-time payments ranging between € 1,500 and € 8,450. Furthermore, both bargaining parties agreed to a new payment structure that puts an end to the past practice of paying operational allowances and results in higher salaries at many DFS branches in Germany. The settlement will cost DFS an additional €50 million over the next two years. The DFS CEO, Dieter Kaden, commented that it was necessary to make some concessions in order to avoid strike action in Germany. This would have devastated the German economy. "We are pleased that we were able to steer away from the original demands of the union, which would have led to costs of around € 230 million," said Mr Kaden. The collective bargaining began last November and dragged on into the new year. A strike by air traffic controllers appeared likely on several occasions. An agreement was finally reached last Saturday after the union had withdrawn some of its high-cost demands and following the intervention of the arbitrator Herta Däubler-Gmelin, the former federal minister of justice. DFS Deutsche Flugsicherung GmbH is a State-owned company under private law and has 5,200 employees. DFS ensures the safe and punctual handling of flights. Staff coordinate around 10,000 aircraft movements in German airspace every day, and more than three million movements every year. With this large number of flights, Germany has the highest traffic volume in Europe. DFS operates control centres in Langen, Bremen, Karlsruhe and Munich. In addition, DFS is represented in the Eurocontrol Centre in Maastricht, the Netherlands, and in the control towers of the 16 international German airports. DFS provides training and consultancy services around the world and develops and sells air traffic control, surveillance and navigation systems. The company's portfolio also comprises flight-relevant data, aeronautical publications and aeronautical information services. DFS has the following business units: Control Centre, Tower, Aeronautical Solutions and Aeronautical Information Management.
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