German public sector workers agree to wage deal with employers

Arbitration led to the agreement of around 2.5 million workers in this sector.

The deal will see each worker receive €3,000 tax-free in monthly payments through February 2024. This is to offset inflation.

It said that wages would rise by €200 per month starting in March 2024. In a second stage, the increase will be 5.5%.

The contract will last for two years.

Verdi had asked for 10.5% more, but said that it would begin a survey among its members, with the final decision coming from the wage commission on 15 May.

Frank Werneke, Verdi’s chief executive officer, said: "We have reached the pain threshold in our decision to make this compromission."

The cost of living has risen dramatically in Germany this year, resulting in some of the most disruptive strikes Germany has seen in decades.

In 2022, consumer prices in Germany grew by 9.6%. However, price pressures have eased in recent months as a winter energy shortage did not occur and supply chain issues were resolved.

This agreement provides employees with a noticeable benefit. "The tax-free payments are going to show up in wallets quickly," said Interior Minister Nancy Faeser.

Verdi reports that the largest walkout of German railways and airports in over three decades was brought to a close by Verdi-led strike action last month.

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