German public sector workers agree to wage deal

Public sector workers in Germany have agreed to a wage deal with employers ending a dispute that has disrupted the transport sector in Europe’s biggest economy.

Germany’s Interior Minister Nancy Faeser and the Verdi union said the agreement for around 2.5 million workers in the sector was reached following arbitration.

Under the deal, each worker will receive a total of 3,000 euros in tax-free payments in instalments through to Feb. 2024 to help offset inflation, said the ministry in a statement.

From March 2024, wages will rise by 200 euros per month and in a second step, there will be a 5.5% increase, it said.

The deal will run for two years.

Verdi, which had wanted 10.5% more money, said it would start a survey of its members with the wage commission making a final decision on May 15.

“We have reached our pain threshold with our decision to make this compromise,” said Verdi chief Frank Werneke.

Also Read: ‘Mega-strike’ disrupts Germany’s public transport

A surge in the cost of living this year has led to some of Germany’s most disruptive strikes in decades.

Consumer prices soared by 9.6% in Germany in 2022 but price pressures have abated in recent months after a winter energy crunch did not materialise and supply chain problems eased.

“This agreement brings noticeable relief to employees. The tax-free payments will show up quickly in wallets,” said Interior Minister Nancy Faeser.

Last month, strike action from unions Verdi and dbb brought railways and airports to a near-halt in Germany’s biggest walkout in more than three decades, according to Verdi.

Zainab Sa’id