Collective bargaining agreement for federal and local employees
Verdi flag
© AFP
Federal and local employees are to gradually receive more money by the end of 2024. The collective bargaining parties agreed on this late on Saturday evening in the fourth round of negotiations in Potsdam on the basis of a previous arbitration recommendation. This means that further strikes in the public sector have been averted in this collective bargaining round.
The collective bargaining agreement applies to 2.5 million employees. From March 2024, salaries are to increase by 5.5 percent, but by at least 340 euros per month. As early as June 2023, tax-free inflation compensation of EUR 3,000 is to be paid out in several tax-free tranches. The term of the collective bargaining agreement is 24 months until December 2024.
Federal Interior Minister Nancy Faeser (SPD) said: “We have reached a responsible collective agreement.” Verdi chairman Frank Werneke said the service union’s wage commission had recommended that members accept the wage compromise.
The President of the Association of Municipal Employers’ Associations (VKA), Karin Welge, as head of negotiations for the municipalities, put the additional costs for cities and municipalities at 17 billion euros over the entire term.
The arbitrators had recommended a gradual inflation adjustment 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’ association initially demanded 10.5 percent, but at least 500 euros more money per month for a period of twelve months.