Lufthansa Group low-cost (LCC) subsidiary Eurowings and German public services trade union Verdi have reached a labor agreement for cabin crews.

According to the agreement, flight attendants will see a 2.5% wage increase backdated from Oct. 1, 2016; a further 2.5% increase Oct.1, 2017; and another 1.25% increase Oct. 1, 2018.

Eurowings cabin chiefs (Chefs de Cabine) will now be managed as pursers and will be compensated based on a separate purser (wages tariff) table, which will see increase of 5% as of Oct. 1, 2016; 2.5% as of Oct. 1, 2017; and 1.25% as of Oct. 1, 2018.

The collective agreement expires March 31, 2019.

The Dusseldorf-based Eurowings will also offer this deal to the UFO flight attendant union.

“With this financial statement, we have gone to the limits of what is economically justified in a difficult market environment. The agreement is an important milestone on the way to the solution of the tariff conflicts in the Eurowings cabin,” MD Jörg Beißel said in a statement.

On Nov. 1, ATW reported Eurowings flight attendants, represented by the UFO union, had postponed a two-day strike even though the latest negotiations failed to reach an agreement.

Previously, Eurowings flight attendants went on a 24-hour strike Oct. 27, resulting in 393 flight cancellations out of 551 scheduled flights for the day, affecting 40,000 passengers.

Lufthansa established Eurowings as a pan-European LCC platform, which is expected to grow to 100 aircraft as competition from LCCs—such UK’s easyJet, Ireland’s Ryanair and Spain’s Vueling—increases to a 50% market share in Europe.