The cockpit union for Lufthansa and pilots, Vereinigung Cockpit agreed to end the long time dispute in following the recommendation of an mediator.

Under the agreed terms Lufthansa, Lufthansa Cargo and Germanwings pilots will get an 8.7 percent pay rise, paid out in four stages. The first two increases will be backdated, with 2 percent from January 1 2016, and 2.3 percent from January 1 2017.

A 2.4 percent increase will apply from January 1 2018, and a final 2 percent lift from the beginning of 2019. There will also be a one-off payment of between EUR€5,000 and €6,000 for each pilot.

Lufthansa said the increases would add around €85 million (USD$90.2 million) a year to its wage bill. To pay for the changes, the Frankfurt-based carrier will operate an additional 40 aircraft outside the airline’s collective agreement, possibly at a low-cost unit.

The agreement will go to the union membership for a ratification vote.The final word now lies with the members.