Germany: in the face of inflation, public employees obtain salary increases

2023-04-23 18:02:21

To compensate for inflation, state and municipal employees in Germany have obtained a gradual increase in their remuneration. This wage increase was obtained at the end of a tariff agreement concluded overnight from Saturday to Sunday, which will make it possible to avoid new strikes.

“We have reached a responsible tariff agreement,” said Interior Minister Nancy Faeser, head of the federal civil service. The pressure was strong on the social partners after several weeks of negotiations without result, accompanied by strike movements in many public sectors – post, transport or hospitals – in a context of sharp rise in prices.

An increase of more than 300 euros

Some 2.5 million state and municipal workers will see their wages increase by 5.5%, or at least 340 euros per month from March 2024. From June 2023, inflation compensation exempt from tax in the amount of 3,000 euros must be paid in several instalments.

“In deciding to accept this compromise, we have gone to the tolerable limit”, commented in a press release Frank Werneke, president of the unified union of services (Verdi), which represents public employees. Verdi and the federation of civil servants demanded a salary increase of 10.5%, and at least 500 euros per month over a period of twelve months.

A vast national strike movement

This agreement will make it possible to avoid a hardening of the social movement after several days of mobilization and work stoppages since the beginning of the year. Verdi had joined at the end of March in a vast movement of national strike having paralyzed the transport sector in Germany.

The inflation records recorded in recent months in the country, with a peak of 10.4% over one year in October, have strained annual wage negotiations in the various sectors of activity. Tariff discussions are continuing in other sectors, such as the rail sector where railway workers observed a half-day strike on Friday.

At the end of 2022, nearly 4 million German industrial workers won a salary increase of 8.5% over two years. In the airport sector, security personnel at Berlin airport are called to strike on Monday by the Verdi union.