German public sector workers have won a 5.5% pay rise to help offset inflation. The deal – reached after late-night talks on April 22 – will help reduce the likelihood of further strikes in Europe’s No. 1 economy .
Employers and unions representing workers have reached a “good and fair agreement on wages,” German Interior Minister Nancy Faeser said in a statement.
The deal comes after weeks of deadlock and repeated strikes by postal , transport and health workers demanding higher wages to cope with rising living costs.
Under the deal, around 2.5 million German public sector workers will receive a 5.5% pay rise, or at least 340 euros a month, from March 2024.
From June 2023, the tax-free inflation compensation payment of €3,000 to employees will be paid in instalments.
The two-year deal largely follows an arbitration recommendation announced a week ago.
“This compromise would not have been possible without the numerous warning strikes and protests over the past few months,” said Ulrich Silberbach of the DBB union.
Members of the Verdi union in Hamburg call for higher wages for railway workers. Photo: The Local.de
Verdi - the union representing workers in the service and entertainment industries, has demanded a 10.5% increase in monthly wages or at least 500 Euros/month.
The union was one of the main forces behind the nationwide strike in late March that paralyzed Germany's transport sector.
“With the decision to enter into this compromise, we have reached the limit of our tolerance,” said Frank Werneke, head of the Verdi union.
Inflation in Germany stood at 7.4% in March – still high, although down from a peak of 8.8% in October last year.
Talks are still ongoing in other sectors, such as rail transport, where workers staged a half-day strike on 21 April.
Postal workers in Germany received an average monthly pay rise of 11.5% in March. Last November, IG Metall, Germany's largest union, won a total pay rise of 8.5% for nearly 4 million employees.
Airport security staff are scheduled to strike at Berlin Brandenburg Airport on April 24 .
Minh Duc (According to The Local.de, DW)
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