In the second round, employers submit an initial offer for federal and local employees. The trade unions are indignant and complain about the social imbalance and the small increase in salaries. Strikes are likely to follow. Both sides will meet again at the end of March.

In the public service of the federal and local governments, the collective bargaining dispute continues to intensify. The Verdi trade union and the civil servants’ association rejected an employer offer from the federal and local governments in the second round of collective bargaining. Verdi boss Frank Werneke rejected the employer’s offer as “crass socially unfair” and announced further warning strikes.

The employers had previously offered a five percent pay increase for a period of 27 months. Accordingly, a surcharge of three percent is to take place on October 1st, and a further two percent in June 2024. In addition, the federal government and local authorities offered tax and duty-free one-off payments of 1,500 euros this year and another 1,000 euros next year to compensate for inflation. Verdi and the German Association of Civil Servants (DBB), on the other hand, are demanding 10.5 percent more salary, but at least 500 euros a month.

Federal Interior Minister Nancy Faeser put the volume of the employer offer at 1.25 billion euros. The Association of Municipal Employers’ Associations VKA stated its share at a further 11.6 billion euros. The SPD Minister Faeser spoke of a fair offer for the 2.4 million federal and local employees, which relieves lower income groups through one-off payments. Wolf-RĂ¼diger Michel, vice-president of the Association of Municipal Employers’ Associations VKA, said the offer was a clear step forward.

This offer will not find any acceptance among the employees, Verdi boss Werneke rejected the employer’s offer. The employers refused a table-effective minimum amount and thus the social component of the collective bargaining demand. Executives would be better served than those on lower incomes. The proposed linear increase of five percent is neither sufficient to compensate for the inflation losses of the past few years nor for the expected inflation rate. The offer means that a cleaner would receive an increase of 5.1 percent, but an office manager would receive an increase of eight percent.

According to Wernekes, the employers are also pushing for worse collective bargaining regulations for the employees of municipal savings banks and an additional collective agreement to reduce wages in municipal hospitals. Werneke announced that this would lead to protests and resistance in large parts of the public service. “We are capable of going on strike across the entire spectrum of the public service.”

The head of the civil servants’ association, Ulrich Silberbach, spoke of a “deceptive package”. The answer will be “very clear” in the next few days. The dissatisfaction of the employees is great and will be brought to the streets before the third round of negotiations.

The third wage round is again planned for March 27th to 29th in Potsdam.