Lufthansa to shun cheap contract workers, agrees to mediator

FRANKFURT (AFP) - Lufthansa made a key concession in talks with unions on Friday, and both sides agreed to a mediator, as a 24-hour walkout that grounded half the airline's flights in Germany entered its final hours.

Europe's biggest airline agreed not to employ cheap contract workers in Berlin as cabin crew, meeting a key union demand, as their latest stoppage over pay and conditions grounded 900 flights.

"Unilaterally, until further notice and without further preconditions, Lufthansa renounces the employment of external cabin crews" hired in the German capital, the airline's chief executive Christoph Franz said.

Flight attendants of temporary employment agency Aviation Power employed by the airline, "will be offered a full-time position with the Lufthansa group next year", the company said.