Public Sector Wage Dispute: Mediators Propose Two-Stage Pay Increase
A proposal for salary increases has been put forward as negotiations resume amid the ongoing conflict between unions and public employers.
The public sector wage dispute in Germany is experiencing renewed momentum as the mediation commission, appointed by both employers and unions, has proposed a structured pay increase.
Effective April 1, 2025, employees in the public sector will see their salaries rise by three percent, with a minimum increase of €110 per month.
A second increment of 2.8 percent is scheduled for May 1, 2026. This proposal was announced by the mediation commission, chaired by Roland Koch, a former Prime Minister of Hesse from the CDU, and Hans-Henning Lühr, a former state councilor from Bremen and member of the SPD.
The wage negotiations, which impact over 2.5 million workers in critical roles ranging from childcare to waste management, reached an impasse on March 17, following three rounds of negotiations.
In light of the breakdown in talks, a mediation process was initiated, and further discussions among the labor parties are set for April 5, 2025.
Within the mediation proposal, additional details include a new tariff contract set to last for 27 months.
Starting in 2026, the annual special payment for employees will be increased, alongside provisions allowing workers outside of hospitals and nursing homes to exchange portions of this payment for days off.
Additionally, by 2027, employees can expect to receive an extra vacation day.
The unions, including Verdi and the German Civil Service Federation, had initially demanded an 8 percent salary increase, or a minimum of €350 more per month, coupled with at least three additional days off per year.
These demands were characterized by the employers—represented by the Association of Municipal Employers’ Associations (VKA) and the Federal Ministry of the Interior—as unaffordable.
In earlier negotiations, employers reportedly offered a 5.5 percent wage increase, along with additional 13th-month salaries and higher night shift allowances, with an open-ended duration for the potential agreements.
However, the unions found these proposals insufficient and opted to continue negotiations.
The employers declared mediation necessary due to perceived rigidities on the part of the unions.
According to VKA President Karin Welge, the estimated financial implications of a wage agreement could amount to €15 billion over two years.
The mediation commission, consisting of 26 members, has held discussions at a confidential location since Monday.
Koch's role includes being the decisive mediator in the case of disagreements.
This latest proposal will form the basis of subsequent negotiations, which are expected to take place on April 5. Notably, no warning strikes are planned during the mediation phase of this wage dispute.
Effective April 1, 2025, employees in the public sector will see their salaries rise by three percent, with a minimum increase of €110 per month.
A second increment of 2.8 percent is scheduled for May 1, 2026. This proposal was announced by the mediation commission, chaired by Roland Koch, a former Prime Minister of Hesse from the CDU, and Hans-Henning Lühr, a former state councilor from Bremen and member of the SPD.
The wage negotiations, which impact over 2.5 million workers in critical roles ranging from childcare to waste management, reached an impasse on March 17, following three rounds of negotiations.
In light of the breakdown in talks, a mediation process was initiated, and further discussions among the labor parties are set for April 5, 2025.
Within the mediation proposal, additional details include a new tariff contract set to last for 27 months.
Starting in 2026, the annual special payment for employees will be increased, alongside provisions allowing workers outside of hospitals and nursing homes to exchange portions of this payment for days off.
Additionally, by 2027, employees can expect to receive an extra vacation day.
The unions, including Verdi and the German Civil Service Federation, had initially demanded an 8 percent salary increase, or a minimum of €350 more per month, coupled with at least three additional days off per year.
These demands were characterized by the employers—represented by the Association of Municipal Employers’ Associations (VKA) and the Federal Ministry of the Interior—as unaffordable.
In earlier negotiations, employers reportedly offered a 5.5 percent wage increase, along with additional 13th-month salaries and higher night shift allowances, with an open-ended duration for the potential agreements.
However, the unions found these proposals insufficient and opted to continue negotiations.
The employers declared mediation necessary due to perceived rigidities on the part of the unions.
According to VKA President Karin Welge, the estimated financial implications of a wage agreement could amount to €15 billion over two years.
The mediation commission, consisting of 26 members, has held discussions at a confidential location since Monday.
Koch's role includes being the decisive mediator in the case of disagreements.
This latest proposal will form the basis of subsequent negotiations, which are expected to take place on April 5. Notably, no warning strikes are planned during the mediation phase of this wage dispute.
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Translated by AI
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