At the outset of the 2025 wage negotiations for public sector workers, unions have raised alarm bells about the dire state of public services across Germany. Verdi Chief Frank Werneke warned, "Many municipalities are on the brink of operational capability; employees are overloaded. If no action is taken, collapse is imminent," during his comments to Deutsche Presse-Agentur (dpa). The urgency of the situation was echoed by Volker Geyer, negotiator for the dbb civil service union, who expressed hope for prompt, goal-oriented proposals from both the federal and municipal governments.
With approximately 500,000 positions currently unfilled and another 1.4 million public sector workers expected to retire over the next decade, unions argue for increased wages and improved working conditions as fundamental to attracting new talent.
The unions are demanding salary increases of eight percent or at least 350 euros more per month, along with three additional paid days off. It is estimated this year’s negotiations will affect roughly 2.5 million public sector employees at both the federal and municipal levels.
The negotiations commenced on January 24, 2025, with significant disparities between union demands and employer offers. The federal government and the Association of Municipal Employers (VKA) are maintaining tight budgets and propose aligning wage increases closely to inflation rates. The economic advisors predict inflation at 2.1% for 2025, indicating the landlords' offers might fall short of union expectations.
Verdi and the dbb pushed for wage adjustments to offset high living costs exacerbated by inflation, which, they claim, strains public service workers. Employers, on the other hand, have cited financial constraints due to skyrocketing costs and declining revenues, particularly within municipalities. Karin Welge, president of the VKA, highlighted concerns over mounting deficits, stating, “The financial pressures are such we can barely accommodate the necessary wage increases.”
This wage negotiation is touted as the most significant series of talks of the year. Communal budgets are already nearing breaking points, with cities and towns wrestling with deficits of 13.2 billion euros in 2024 alone—an unprecedented figure. The VKA argues against adding financial burdens through lofty salary increases, warning it could lead to staff reductions and service cuts.
Adding to the complexity is the call for extra leave days. Employers are opposed to this demand, insisting they would struggle to fill service gaps resulting from additional employee absences. Matthias Rebbert, spokesman for the VKA, commented on this issue, stating, “We can hardly manage the personnel voids even now.”
Unions have expressed readiness to strike if negotiations do not meet their demands, showing increased resolve from public workers to garner support for their pivotal roles—particularly amid staffing shortages and demands for more services. Oliver Greie, the head of Verdi for the Dresden region and participant at the negotiations, commented on workforce compensation, emphasizing, “Investment cuts must not become the burden of employees.” The impending threat of strikes, including organized actions across various public sectors such as social services and public transport, haunts the discussions.
Federal Minister of the Interior Nancy Faeser acknowledged the high expectations from unions but emphasized the current financial impositions are substantial, particularly on municipalities. She has indicated optimism toward facilitating satisfactory outcomes for both employees and employers as talks progress.
With negotiations set to take place through March, including planned discussions on February 17-18 and concluding talks around March 14-16, the stakes are high. The next few weeks are seen as pivotal not only for current public sector labor force sustainability but also for the long-term viability of German public services.
Historical trends show past negotiations were fraught with tensions, leading to strikes which successfully garnered substantial raises. Will the unions rally their workforce to follow suit this year? Many public sector employees are watching closely, anticipating if their advocates can successfully negotiate for the support they direly need to sustain themselves and their services amid growing demands and decreasing resources.