No respite in Germany as Public service pay talks collapse

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Government, VERDI fail to reach agreement on pay rise
No respite in Germany as Public service pay talks collapse

 

Admin l Friday, March 31, 2023

 

BERLIN – German employers and unions could not reach an agreement in talks over public service pay, at least for now, negotiators told dpa in the early hours of Thursday.

This was the third round of collective bargaining negotiations which had stalled earlier as both sides failed to agree on pay amid rising inflation. Independent arbitrators will now be tasked with helping to find a solution.

The talks in Potsdam between the government, local authorities and union representatives were held against the backdrop of massive strikes in the transport sector that largely brought rail and air travel to a halt in much of Germany.

Interior Minister Nancy Faeser said that the talks did not reach an outcome because the unions rejected the employers’ offer and that the talks would now go to arbitration. Previously chosen independent conciliators will now make a proposal for a solution within set deadlines. While the process is ongoing there will be no further strikes.

Verdi boss Frank Werneke said the “differences could not be bridged” and the trade union declared the talks’ failure.

Verdi and the civil servants’ association dbb have been negotiating with the federal and local governments since January over the incomes of some 2.5 million employees.

As inflation rises, Verdi and the dbb are demanding 10.5% more income, or at least €500 ($538) more per month, over a 12-month period.

Employers offered 8% more pay and a minimum of €300 more per month as well as a one-off payments of €3,000.

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