In a dispute over collective bargaining in the civil service sector, the arbitration commission demanded inflation compensation of €3,000 for 2.5 million employees. In addition, the wages provided for by collective agreements must be increased by at least 340 euros.
It seems that the dispute over the collective agreement in the federal and municipal public service has moved a little. An arbitration commission set up by employers and unions has made a recommendation on the agreement. In accordance with this, in a first step, around 2.5 million employees should receive a tax-free inflation allowance in the amount of 3,000 euros, which will be paid in installments until February 2024.
From March 1, 2024, in the second phase, wages will be increased by a basic amount of 200 euros and then by 5.5%. The increase must be at least 340 euros. The duration of the contract is 24 months.
However, this recommendation does not end the debate on collective bargaining. This is only the basis for the continuation of negotiations, which must resume in Potsdam on April 22.
If no agreement is found there, the Verdi unions and the German Federation of Public Employees can launch a vote on an indefinite strike. Recall that Verdi and the dbb union demanded a salary increase of 10.5%, but not less than 500 euros per month, while the collective agreement was to be designed for twelve months.
According to the arbitration board, the recommendation was not accepted unanimously, but only by an “overwhelming majority”. The unions had an advantage since the mediator Hans-Henning Luhr, appointed by them, had the right to vote. At the same time, the intermediary appointed by the employers, Georg Milbradt, spoke in favor of the recommendation.
“As the federal government’s chief negotiator, I am delighted that the conciliation committee has reached a recommendation on a deal,” Federal Home Secretary Nancy Feather told Reuters. This is a “significant relief for workers in times of crisis”. “At the same time, we have to constantly monitor the tight fiscal situation in municipalities, as well as the federal government,” Feather said. The aim now is to “reach an agreement” when negotiations resume.
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