* DFS authority agrees to 5.2 percent pay increase
* Some employees to be moved up pay scale
* Lufthansa, Fraport, Air Berlin shares up
(Adds background, comments)
By Victoria Bryan and Peter Maushagen
FRANKFURT, Oct 12 The German air traffic control
authority has reached a deal on pay and conditions with the GdF
union, thus averting a strike that would have disrupted
thousands of flights across Europe.
The DFS authority said on Wednesday it had agreed to
increase pay by a total 5.2 percent in two stages over a 17
month period, while certain employees would be moved up the pay
scale, thus receiving a further increase.
The GdF union, which had wanted a 6.5 percent rise,
confirmed that a deal had been reached.
In total, the measures will increase the DFS' labour costs
by around 9 percent, it said.
The authority described the deal as "a major financial
burden" but said it wished to reach an agreement in the
interests of customers and passengers.
The wrangling over pay and conditions has been going on
since the start of the year and intensified when the union
threatened to strike twice in August during the busy summer
Those strikes were averted by court action and a last-minute
agreement by the DFS to enter mediation.
The final round of talks, which were held on Wednesday near
Germany's largest airport in Frankfurt, had been called at the
behest of the German government, which controls the DFS, after
mediation talks broke down last week.
Shares in Air Berlin closed up 5 percent, while
shares in Lufthansa and Frankfurt airport operator
Fraport were up 2 percent and 3.3 percent,
Around 6,000 people work for the DFS, coordinating up to
10,000 flight movements in German airspace a day, the authority
(Reporting by Victoria Bryan, Peter Maushagen and Christoph
Steitz; Editing by Elaine Hardcastle)