October 30, 2016 / 9:17 PM / a year ago

Union rejects Lufthansa's Eurowings arbitration offer

FRANKFURT (Reuters) - Cabin crew trade union UFO has rejected an offer to mediate a dispute over pay and conditions with Lufthansa’s (LHAG.DE) budget flights unit Eurowings, Lufthansa said on Sunday, raising the probability of strike action.

People line up behind a barrier tape of Lufthansa's budget airlines Eurowings during a 24-hour strike over pay and working conditions at Cologne-Bonn airport, Germany October 27, 2016. REUTERS/Wolfgang Rattay

“It is more obvious than ever that the union does not want to find a solution,” Eurowings human resources director Joerg Beissel said in a statement.

Eurowings put forward a new offer last week that includes an average pay increase of around 7 percent. At Germanwings, UFO said it has failed to reach an agreement on part-time contracts.

Lufthansa cabin crew and pilots have embarked on a series of strikes over the last few years as the airline battles to reduce costs in order to compete with low-cost rivals and long-haul carriers with leaner cost bases.

Reporting by Georgina Prodhan; editing by Susan Thomas

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