Negotiations for the public sector in Germany are reaching a critical juncture as employers and unions continue discussions in Potsdam regarding a proposed wage increase. The arbitration commission has suggested a two-stage wage increase of 5.8 percent over a 27-month period, but unions are pushing for significantly higher raises.
The Verdi and dbb Beamtenbund unions have made clear their demands, which include an eight percent salary increase, with a minimum raise of 350 euros per month. However, the Association of Municipal Employers' Associations and the federal government view these demands as financially unfeasible.
The negotiations, which involve over 2.5 million employees across various sectors, including administration, daycare centers, nursing facilities, garbage collection, and airports, were declared unsuccessful in mid-March after the third round of talks. This led to the initiation of arbitration.
As talks resumed on the night of April 5, 2025, both sides are still deliberating on the conciliators' recommendation. The proposed wage increase suggests that employees would receive a three percent linear increase starting April 1, 2025, with a minimum increase of 110 euros per month. Following this, a further increase of 2.8 percent is expected on May 1, 2026.
Federal Interior Minister Nancy Faeser expressed cautious optimism before the latest round of negotiations, noting, "We are slowly approaching the finish line." Despite the constructive nature of the discussions, no agreement has yet been reached.
The stakes are high, as failure to reach a consensus could lead to indefinite strikes. Unions have indicated that they may initiate a ballot for such strikes if an agreement is not forthcoming by the end of the weekend. A 75 percent majority in a union vote would be required to proceed with indefinite strikes.
In addition to wage increases, the arbitration proposal includes provisions for more flexible working hours and higher allowances for shift work. Specifically, the proposal suggests that from July 1, 2025, shift work allowances would increase to 100 euros, and alternating shift work allowances to 200 euros.
The unions are advocating for improved working conditions, including additional vacation days and the option to exchange parts of their annual special payment for days off. These changes are vital for the morale and retention of staff in critical public service roles.
As the negotiations continue, the public sector employees await a resolution that could significantly impact their livelihoods and working conditions. The outcome of these discussions is expected to be revealed on Sunday morning, April 6, 2025, at the earliest.
With both sides entrenched in their positions, the coming hours will be crucial in determining whether a compromise can be reached or if the situation will escalate into widespread industrial action.
