At least 340 euros more in public service – and 3000 euros inflation bonus

The collective bargaining dispute in the public sector is to be ended with the help of an arbitration commission. The proposal: 2.5 million federal and local employees will initially receive a tax-free inflation adjustment of 3,000 euros, which will be paid in several installments by February 2024. Namely 1240 euros this June and 220 euros a month from July to February 2024.

At least 340 euros more in public service

From March 2024, a base amount of 200 euros will follow, combined with a linear increase of 5.5 percent. In salary groups in which no increase of 340 euros is achieved in this way, the amount should be set at 340 euros. The term retrospectively from January 2023 should be 24 months.

“Fair reconciliation of interests”

This mix is ​​”a fair balance of interests, for which of course a lot of money has to be spent,” explained the chairman of the arbitration commission, the Bremen administrative lawyer Hans-Henning Lühr. He had been appointed by the workers’ side as an arbitrator.

The former Prime Minister of Saxony, Georg Milbradt (CDU), named by the employers, said he could support the recommendation “despite the unusual amount”. According to information from the Süddeutsche Zeitung, 24 of the 26 members of the arbitration commission have already approved the proposal.

Whether this will now be implemented will be discussed by trade unions, the federal government and local authorities on April 22nd in Potsdam. If an agreement fails, the unions could initiate ballots and indefinite strikes.

Tariff round previously failed three times

The collective bargaining round in the public sector failed in the third round at the end of March. The collective bargaining committees of Verdi and the civil service association unanimously rejected the employer’s offer as not being able to reach an agreement.

Verdi and the civil servants’ association demanded 10.5 percent more money, but at least 500 euros a month. According to the employers, the offer from the federal government and local authorities totaled eight percent for a period of 27 months. According to this information, it contained a minimum monthly amount of 300 euros.

In addition, a tax-free inflation adjustment of 3000 euros should not be paid in a table. The employers’ side initiated arbitration in the collective bargaining dispute, and the process began on April 2nd.