German public sector workers have struck a wage deal with employers, ending a months-long dispute that sparked strikes and brought transport to a halt in Germany.
The agreement, signed on 22 April by Interior Minister Nancy Faeser and by the union ver.di (Vereinte Dienstleistungsgewerkschaft, Union of trade unions in the service sector), will apply to around 2.5 million workers in the public sector: each employee will receive 3,000 euros tax-free between now and February 2024 as a one-off contribution to offset inflation, he explained the ministry in a note. The first payment of 1,240 will take place in June. From March 2024, salaries will increase by 200 euros a month, and in a second phase there will be a 5.5 percent increase. The agreement will have a duration of two years.
Final decision in May
Ver.di, Germany’s second-largest trade union after IG Metall, with over two million members strong, was aiming for a 10.5% wage increase and announced the launch of a survey among its members with the Wages Commission, which will make a final decision on May 15th. With the green light to this compromise agreement “we have reached our pain threshold”, explained the leader of Ver.di, Frank Werneke.
The soaring cost of living this year has led to some of the largest and most participatory German strikes in decades. Consumer prices in Germany increased by 9.6% in 2022, but pressure on prices has eased in recent months after this winter’s energy crisis turned out to be less severe than expected, and supply chain problems supplies have diminished. “This deal brings significant relief to employees. Tax-free payments will quickly appear in wallets,” Interior Minister Nancy Faeser stressed. In March, the strike promoted by the Ver.di union almost brought the railways and airports to a halt in Germany’s largest strike in more than three decades.
