BERLIN (AP) — The German government and unions have reached a wage agreement for more than 2.5 million public sector workers, ending a longstanding dispute and ending the possibility of disruptive strikes.
The ver.di union had lobbied for major increases as Germany, like many other countries, suffers from high inflation. Home Secretary Nancy Faeser said that in the deal announced Sunday morning “we accommodated unions as much as we could responsibly in a difficult budget situation.”
The agreement includes one-off payments of 3,000 euros ($3,300) per employee, spread over 1,240 euros in June and monthly payments of 220 euros through February. In March, the monthly salary for everyone will be increased by 200 euros, followed by a 5.5% salary increase. The agreement lasts until the end of 2024.
Ver.di had claimed a one-year deal with a 10.5% raise. The deal was closed on the proposal of implicated mediators after talks broke down last month.
“We reached our limit with the decision to reach this agreement,” Ver.di president Frank Werneke said. The increases in the regular salary next year will mean an increase of around 11% for the majority of workers.
The year-on-year rate of inflation in Germany has eased from the levels at the end of last year, although it remains high, at 7.4% in March.
