Negotiations for the pay of public sector employees in Germany, involving approximately 2.5 million workers, are ongoing in Potsdam, with no immediate resolution in sight.

The discussions, which began on March 14 and are set to conclude no later than March 16, have seen sporadic optimism, but a failure to reach an agreement remains a possibility.

The negotiations focus on the wages and working hours of employees who are governed by the Collective Agreement for the Public Service (TVöD), covering roles in critical sectors such as childcare and waste management.

The unions involved, Verdi and the dbb Beamtenbund, initially demanded an eight percent wage increase or a minimum raise of 350 euros per month, along with at least three additional days off per year.

Reports indicate that new proposals from the unions were presented on the evening of March 15. While these were acknowledged as progress, they were deemed insufficient by employer representatives.

The discussions are led by Germany's Federal Ministry of the Interior and the Association of Local Employers (VKA), who assert that the unions' initial demands are financially unfeasible for municipalities, estimating that the core demands could cost around 15 billion euros annually.

A significant sticking point in the negotiations has been the request for additional days off, with employers warning that such measures may necessitate service reductions, potentially impacting operations like kindergarten hours.

This meeting marks the third round of negotiations, which was originally scheduled to end on Sunday evening.

Should no agreement be reached, a deferral of the talks is possible, which may lead to further strike actions in the public sector.

Recently, tens of thousands of workers in various sectors, including airports and childcare facilities, participated in temporary work stoppages.

Alternatively, if one side declares the negotiations unsuccessful, a mediation process could be initiated, which would temporarily halt any new strike actions.