Wage increase for public employees, in the midst of a social conflict

2023-04-23 13:12:53

A battle won. State and municipal employees in Germany have obtained a gradual increase in their remuneration to compensate for inflation following a tariff agreement concluded overnight from Saturday to Sunday, which will make it possible to avoid new strikes.

“We have reached a responsible tariff agreement,” said Interior Minister Nancy Faeser, head of the federal civil service. The pressure was strong on the social partners after several weeks of negotiations without result, accompanied by strike movements in many public sectors, in a context of sharp rise in prices.

Some 2.5 million state and municipal workers will see their wages increase by 5.5%, or at least 340 euros per month, from March 2024. From June 2023, compensation for inflation exempted tax in the amount of 3,000 euros must be paid in several instalments. “In deciding to accept this compromise, we have gone to the tolerable limit”, commented in a press release Frank Werneke, president of the unified union of services (Verdi), which represents public employees.

The State wants to avoid a hardening of the social conflict

Verdi and the federation of civil servants demanded a salary increase of 10.5%, and at least 500 euros per month over a period of twelve months. This agreement will make it possible to avoid a hardening of the social movement after several days of mobilization and work stoppages since the beginning of the year. Verdi had joined at the end of March in a vast movement of national strike having paralyzed the transport sector in Germany.

The inflation records recorded in recent months in the country, with a peak of 10.4% over one year in October, have strained annual wage negotiations in the various sectors of activity.

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