Trade unions and employers have failed to negotiate wages in the public sector after three days of talks, accompanied by widespread warning strikes. The two sides did not reach an agreement in the final round, and independent arbitrators will now attempt to find a solution. There will be a cessation of public sector strikes over the Easter period during the arbitration period. The employers had offered an eight percent increase in income, with a minimum of €300 ($320) and a one-off bonus of €3,000, which the unions rejected. The unions are demanding a minimum increase in income of 10.5 percent, or at least €500 per month, citing high inflation. The dispute affects more than 2.4 million public sector employees.
Status: 03/30/2023 01:17 am
Accompanied by massive warning strikes, trade unions and employers negotiated wages in the public sector. The final round lasted three days. In the end there was no agreement – now it’s time for arbitration.
Collective bargaining for the public sector at federal and local level has failed. Employers and unions did not reach a result in the last of three planned rounds of negotiations. Independent arbitrators will now seek a solution.
During the arbitration period, there is a peace obligation – so there will be no new work stoppages in the public sector over the Easter days.
Collective bargaining has failed, Frank Werneke, chairman of ver.di
Tagesschau 12:35 a.m., 30.3.2023
Faeser: “Will convene arbitration”
“In the end we had to realize that the differences couldn’t be bridged,” said ver.de boss Frank Werneke early in the morning in Potsdam. Werneke said that Ver.di had declared the failure of the negotiations. The trade union bodies had decided this unanimously. The head of the civil servants’ association dbb, Ulrich Silberbach, also expressed his views on behalf of his union.
Shortly thereafter, Federal Interior Minister Nancy Faeser (SPD) announced: “We will now convene the arbitration.” Faeser and the municipal negotiator, Karin Welge, regretted that the unions had declared failure.
The employers would have offered eight percent more income and a minimum amount of 300 euros and a one-off payment of 3000 euros. In arbitration, previously appointed independent arbitrators propose a solution within a set period of time. The parties to the collective bargaining agreement then negotiate this again.
10.5 percent more income demanded
Since Monday, trade unions and employers in Potsdam have been negotiating the incomes of 2.5 million employees in their third round of negotiations. The trade union ver.di and the civil servants’ association dbb are demanding 10.5 percent more income, but at least 500 euros more per month. This minimum amount is crucial for them: for those on low incomes, this should compensate for the high inflation.
The VKA had long rejected a minimum amount. The employers had also rejected the demands as a whole as unaffordable. The trade unions were outraged by the employers’ attitude and have organized increasingly large warning strikes in recent weeks.
Ver.di sees itself strengthened by warning strikes
Ver.di sees itself strengthened by the massive warning strikes of the past few weeks. Verdi boss Frank Werneke spoke of the “largest warning strike participation for many years and decades”. The union recorded over 70,000 entries in the past three months.
Members of a number of professions are affected by the collective bargaining in the public sector – including educators, bus drivers, employees of pools, firefighters, nurses, administrative employees, geriatric nurses, sewage treatment plant employees, foresters and doctors. It is about the income of more than 2.4 million employees of the municipal employers and 134,000 of the federal government. According to the will of the trade unions, the result should be transferred to the civil servants.
The failure of negotiations in the public sector regarding wages is a disappointment for both workers and employers alike. Currently, arbitration will take place, and a solution is expected to be proposed shortly. The peace obligation during this time means that work stoppages will not occur during the Easter break. Although the differences could not be bridged, the unions remain optimistic given the tremendous participation in the form of massive warning strikes. The outcome of the negotiations will affect more than 2.4 million employees across various professions, and the result hoped to be achieved will be transferred to civil servants. We await the outcome of arbitration and hope that a successful resolution will eventually be reached.