The public transport operator began talks with the OGB-L and FNCTTFEL-Landesverband in November 2017, according to a Luxtram press release issued on 3 October.
The agreement took effect retroactively to 1 January 2019, Luxtram said. Under the terms of the deal, Luxtram employees will receive a 13th month of salary, 4% pay rise, two additional days of paid leave and meal vouchers, among other benefits.
Luxtram said it currently employed 108 staff and that it planned to hire 40 new tram drivers by 2020.
The accord runs until 31 December 2021.