[Germany] Public sector workers strike wage deal

[Germany] Public sector workers strike wage deal
25 Apr 2023

In Germany, public sector workers have struck a wage deal with employers, ending a months-long dispute that prompted strikes and brought transport to a standstill, Breaking Latest News reports.

The agreement was signed on April 22 by Interior Minister Nancy Faeser and by the ver.di union. It will affect around 2.5 million workers in the public sector and each employee will receive 3,000 euro tax-free between now and February 2024 as a one-off contribution to offset inflation, according to a note from the minister. 

The first payment of 1,240 euro will reportedly be made in June. From March 2024, salaries will increase by 200 euro a month and there will be a 5.5 per cent increase in a second phase. The agreement will have a duration of two years.

Ver.di is Germany’s second-largest trade union - after IG Metall - with over two million members. It was aiming to achieve a 10.5 per cent wage increase and announced the launch of a survey among its members with the Wages Commission. A final decision will be made by the commission on May 15. Frank Wernekeith - the leader of Ver.di -  said that with the compromise agreement getting the go ahead, “we have reached our pain threshold”.

2023’s dramatically rising cost of living has provoked some of the largest and most populous German strikes in decades. Consumer prices in Germany reportedly increased by 9.6 per cent in 2022, however, pressure on prices has eased in recent months after the past winter’s energy crisis was less severe than expected and supply chain problems diminished. 

Commenting on the agreement, Interior Minister Nancy Faeser said, “This deal brings significant relief to employees. Tax-free payments will quickly appear in wallets.”


Source: Breaking Latest News

(Quotes via original reporting)

In Germany, public sector workers have struck a wage deal with employers, ending a months-long dispute that prompted strikes and brought transport to a standstill, Breaking Latest News reports.

The agreement was signed on April 22 by Interior Minister Nancy Faeser and by the ver.di union. It will affect around 2.5 million workers in the public sector and each employee will receive 3,000 euro tax-free between now and February 2024 as a one-off contribution to offset inflation, according to a note from the minister. 

The first payment of 1,240 euro will reportedly be made in June. From March 2024, salaries will increase by 200 euro a month and there will be a 5.5 per cent increase in a second phase. The agreement will have a duration of two years.

Ver.di is Germany’s second-largest trade union - after IG Metall - with over two million members. It was aiming to achieve a 10.5 per cent wage increase and announced the launch of a survey among its members with the Wages Commission. A final decision will be made by the commission on May 15. Frank Wernekeith - the leader of Ver.di -  said that with the compromise agreement getting the go ahead, “we have reached our pain threshold”.

2023’s dramatically rising cost of living has provoked some of the largest and most populous German strikes in decades. Consumer prices in Germany reportedly increased by 9.6 per cent in 2022, however, pressure on prices has eased in recent months after the past winter’s energy crisis was less severe than expected and supply chain problems diminished. 

Commenting on the agreement, Interior Minister Nancy Faeser said, “This deal brings significant relief to employees. Tax-free payments will quickly appear in wallets.”


Source: Breaking Latest News

(Quotes via original reporting)

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