The 2025 collective bargaining negotiations for the public sector of Germany commenced on January 24, 2025, in Potsdam, with representatives from both federal and municipal levels coming together to discuss the future of approximately 2.6 million employees. Federal Interior Minister Nancy Faeser leads the negotiations on behalf of the employers, emphasizing the imperative of finding reasonable solutions for public sector workers.
"Respect for the people who keep our country running every day," stated Faeser, highlighting the significance of the employees' roles within the public sector. The negotiations revolve around the pay and working conditions regulated under the Collective Agreement for the Public Service (TVöD), and they encompass not only the federal workers but also those employed by local governments.
The trade unions representing the workers, including ver.di and dbb, have made significant demands this bargaining round, calling for salary increases of at least 8% or at minimum, €350 more monthly, effective for a 12-month duration. This wage increase could translate to salary hikes of up to 14.9% for some employees, depending on their pay grade and level of service, with the average increase projected at around 9.5%."Given the rising cost of living and the strain of inflation, these increases are not just necessary; they're overdue," said union representatives. They also pressed for additional vacation days to combat increasing workloads.
Union representatives argue these compensatory adjustments are not only applicable to current inflation rates, which, though lowering, still remain elevated, but they also seek ways to alleviate the burdens faced by public employees especially those working extensive hours or under high-stress conditions. Among their proposals, the unions are advocating for enhanced compensation for demanding roles, particularly those within healthcare, offering higher bonuses for shift work.
Faeser acknowledged the challenging fiscal environment, citing the tight municipal budgets, pushing the need for fruitful negotiations to address employees' demands. She stated, "The budgetary situation remains strained. Our focus now is to arrive at fair agreements with the unions. I am committed to making this happen, as we have successfully done so previously through mutual respect and consideration.", underscoring the necessity of collaborative discussions to arrive at satisfactory outcomes for both the civil servants and the sectors they serve.
The costs associated with the wage demands are substantial, projected at about €1.7 billion annually for federal employees alone. If all public sector workers, including retired personnel, are factored, total additional costs could reach approximately €4.4 billion. The outcomes of this round of negotiations will directly influence both the 132,000 federal employees and 2.5 million municipal employees governed by the TVöD.
Union officials have addressed concerns about potential real wage losses due to inflation, emphasizing the need for forward-thinking action and responsiveness from the government. Volker Geyer from dbb stated, "It is unacceptable to delay meaningful negotiations, especially with falling inflation rates and the resultant effects on municipal finances. Where are the specific proposals from the employers? A competitive public sector is increasingly at risk without actionable resolutions on pay."
The unions are pressing not just for salaries but also for improved work-life balances through additional days off, attempting to alleviate work pressures exacerbated by staffing shortages. "This may offer some relief to the workforce, especially within municipalities and underfunded sectors like education and healthcare," they argue.
Despite the stakeholders acknowledging the pressing complications within public finances, union representatives warn against treating employees as expendable during fiscal constraints. "The employees cannot bear the burden of austerity measures without being compensated for their service. They deserve significant income additions, without any expectation of excessive sacrifices on their part."
Many municipalities are feeling the pressure, with finances severely strained, particularly as 2025 progresses. Union members, harangued by the attrition of skilled personnel and increasing workloads, have voiced concerns about service provision. By 2025, the imminent retirement of 1.4 million employees raises alarm bells about future staffing levels. "With the steep influx of retirements, if we don't make the public sector more desirable soon, we may face irreparable losses," says Frank Werneke from ver.di, calling for urgent action.
Negotiations are already predicted to evoke significant disruptions, with the possibility of warning strikes looming if discussions falter. Participants may engage in modified work stoppages to demonstrate solidarity and draw attention to their demands. The potential for walkouts looms if more concrete offers do not arise during talks scheduled for February. Mustering employees across various sectors from hospitals, schools, and city administrations seeks to spotlight the severity of these situations. The regional elections happening concurrently may also lend stridency to resolve this pressing concern.
The ensuing negotiations are pivotal, with longer-term consequences for Germany’s public sector, echoing broader sentiments within European labor trends faced under economic challenges