Two of Germany’s unions representing Public Servants are demanding a 4.8 per cent wage increase for the more than 2.3 million employees in Federal and Local Government.
Chair of the Verdi Union, Frank Werneke (pictured) said the COVID-19 pandemic had shown that the public sector and its employees were holding the country together.
“This must also be reflected in the result of the upcoming wage negotiations,” Mr Werneke said.
Mr Werneke said the proposed wage freeze by employers was “absolutely unacceptable” as the public sector would play a decisive role this year in stabilising economic developments.
“This can only be achieved if domestic demand is permanently stimulated. We must seize this opportunity,” he said.
Chair of the German Civil Service Federation, Ulrich Silberbach said he expected unusually difficult negotiations this time, but also stressed that public sector workers, especially in health care, had proven to be crucial in getting the country relatively smoothly through the pandemic.
“The Public Service is system-relevant and its employees deserve more than just warm words or a round of applause,” Mr Silberbach said.
Unions and employers begin negotiations this week (1 September) in Potsdam near Berlin. They have already agreed to have two further rounds of wage talks on 19 and 20 September and 22 and 23 October.
The 4.8 per cent pay demand would apply for a period of 12 months.
In 2018, unions and employers ended marathon talks with a phased agreement to boost the pay of Federal and municipal public workers by some 7.5 per cent over two-and-a-half years.
The European Central Bank is keeping a close eye on German wage negotiations for any sign that wage growth, and with it price pressure, might be losing steam as this could further complicate its already difficult task to achieve inflation targets.
Berlin, 28 August 2020
