26 September 2023

GERMANY: Workers restive as pay talks stall

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Germany’s public sector workers have held ‘warning strikes’ as negotiations continued in contract bargaining that is to affect 1.4 million Public Servants working for State Governments and around one million pensioners.

The talks began on 8 October involving unions and official negotiators from all Germany’s 16 States, and have continued on and off since.

Workers are concerned at the lack of progress especially after Chair of the official negotiators, Reinhold Hilbers described the unions’ demands as “illusory” following costs arising from the COVID-19 pandemic.

“We are striving for a quick consolidation of the budget without new debt,” Mr Hilbers said.

“With personnel costs averaging 45 per cent of the budget volume, this sector will have to contribute a notable amount,” he said.

Union negotiators said Mr Hilbers had threatened that State Governments would respond with staff cuts to any deal that, in their view, exceeded their financial capacity.

According to the Verdi Public Service union, Mr Hilbers said there had been significant improvements in the 2019 contract bargaining round and that “COVID-19 was a unique one-time burden that did not justify any permanent increase in wages”.

The union said Mr Hilbers maintained that a shortage of skilled workers in the public sector was “only noticeable in a few areas and affects all employers equally”, and that more money “would not help there”.

Unions are demanding a five per cent pay increase over 12 months, or at least €150 ($A234) a month, and at least €300 ($A467) in the health care sector, plus €100 ($A156) per month more for all trainees.

Berlin, 31 October 2021

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