BERLIN (AP) — German government officials and trade unions reach an agreement on wages for more than 2.5 million public sector workers, ending a long dispute and averting a possible devastating all-out strike .
The ver.di union wanted a big pay rise at a time when Germany, like many other countries, is grappling with high inflation. Home Secretary Nancy Fazer said when the deal was announced early Sunday morning, “we have responded to the unions as responsibly as we can in a difficult budget situation.”
The contract calls for a total lump sum payment of €3,000 ($3,300) per employee, with the first €1,240 paid in June, followed by monthly payments of €220 through February. In March, everyone’s normal monthly salary will be increased by €200, followed by a 5.5% raise for him. The contract runs until the end of 2024.
Ver.di originally sought a one-year deal with a 10.5% raise. The deal was finalized on the proposal of an arbitrator called after negotiations fell apart last month.
Ver.di Chairman Frank Werneke said, “With this decision to compromise, we have reached the limit of our pain.” He said next year’s regular salary increase equates to an increase of more than 11% for most employees.
Germany’s annual inflation rate has eased from levels reached at the end of last year, but remains high. In March it was 7.4%.
https://wgnradio.com/news/business-news/german-government-unions-reach-pay-deal-for-public-workers/ German government and trade unions agree wage deal for civil servants WGN Radio 720