Public Sector Employers Propose 5.5% Salary Increase

In a significant development for public sector employees in Germany, employers have proposed a salary increase of 5.5% during ongoing negotiations. This offer was revealed during discussions in Potsdam, where representatives from various public service sectors are seeking a resolution on pay and working conditions for over 2.5 million workers.

The proposal, while an improvement, falls short of the demands put forth by unions, which are calling for an 8% increase or a minimum of an additional EUR350. Several critical issues remain unresolved, leaving the prospect of a final agreement uncertain.

The negotiations, which began last Friday, have been described as challenging. On one side, representatives from the Federal Ministry of the Interior and the Association of Municipal Employers (VKA) are advocating for the employers, while the unions Verdi and dbb Beamtenbund represent the workers. Key topics of discussion include not only salaries but also work hours for employees ranging from kindergarten staff to waste management workers.

In addition to the salary increase, the employers' proposal includes enhancements to the 13th month salary and increased allowances for shift work. A proposed "time-instead-of-money model" would allow employees to convert portions of their annual bonus into additional paid time off. This concept aims to provide more flexibility for workers.

Conversely, unions are pushing for at least three additional days off per year. This has emerged as a contentious point in the negotiations. Employers have expressed concerns that increased time off could lead to staffing shortages, potentially affecting service delivery. Unions argue that more time off and flexible working hours would enhance job attractiveness and satisfaction.

As discussions continued on Monday, participants indicated that progress was being made, albeit slowly. Karin Welge, the lead negotiator for municipal employers, noted that the gap between the parties has narrowed, indicating a serious interest in reaching a resolution. However, she acknowledged that discussions are far from complete.

By late afternoon, it remained unclear whether a consensus could be achieved in the current round of negotiations. If an agreement is not reached, there is a possibility of postponing discussions, which could lead to further strikes. Should one party declare the negotiations unsuccessful, independent mediators may be called upon, which would introduce a temporary halt to strike actions during the mediation period.