Public sector workers receive higher wages

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The months-long battle in the collective bargaining dispute in the public sector in Germany is over: after hard hours of negotiations, all parties have agreed on a compromise. The basis for this: a mediator proposal from last week.

Federal and local workers will gradually receive more money by the end of 2024. The collective labor agreement parties agreed on this late Saturday evening in the fourth round of negotiations in Potsdam on the basis of earlier arbitration advice. This means that further strikes in the public sector have been averted in this round of collective labor agreements.

The collective labor agreement applies to 2.5 million employees. From March 2024, salaries will increase by 5.5 percent, but by at least 340 euros per month. As early as June 2023, the tax-free inflation compensation of 3,000 euros must be paid out in several tax-free tranches. The term of the collective labor agreement is 24 months up to and including December 2024.

Additional costs of 17 billion euros

Federal Interior Secretary Nancy Faeser (52) (SPD) said: “We have reached a responsible collective bargaining agreement.” Verdi chairman Frank Werneke said the union’s wage committee had recommended that members accept the wage compromise.

The chairman of the Association of Municipal Employers’ Associations (VKA), Karin Welge (61), as head of negotiation for the municipalities, estimated the additional costs for cities and municipalities at 17 billion euros (converted to 16.8 billion francs) over the entire term.

The arbitrators had recommended a gradual inflation correction of 3,000 euros from June and 5.5 percent from March next year, but at least 340 euros more per month. Verdi and the civil servants union initially demanded 10.5 percent, but at least 500 euros more money per month for a period of twelve months. (AFP/SDA)

Source: Blick