Almost two million employees
Breaking through tariff knots in wholesale trade – agreement in Bavaria
19.06.2024, 14:32
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For months, employers in the wholesale and foreign trade sectors have been negotiating with the unions about an agreement for employees. The compromise found for the district of Bavaria has an unusually long term. Both sides hope that it will be a pilot project.
In the months-long wage dispute over the pay of around 1.9 million employees in wholesale and foreign trade nationwide, a first agreement has been reached in Bavaria. The Verdi union spoke of a breakthrough and the employers of a groundbreaking agreement. “We expect that the other collective bargaining areas will now also reach results quickly,” said Verdi board member Silke Zimmer. Verdi and the Bavarian Association of Wholesale, Foreign Trade and Services (LGAD) had reached an agreement for 240,000 employees the previous evening. The employers also said: “It can be assumed that this result will form the basis for further agreements in the other collective bargaining areas.”
According to Verdi, an agreement was reached for 36 months. Wages would be increased by 5.1 percent retroactively to October 1, 2023. From May 1, 2024, they would rise by a further 5.0 percent. In a third step, employees would receive a further increase of 2.0 percent on May 1, 2025. An inflation compensation bonus of 1,000 euros was also agreed, which cannot be offset against previous payments. In addition, Verdi and the LGAD agreed on a collective pension of 480 euros. They wanted to start collective bargaining on a mandatory pension scheme as soon as possible.
“The collective agreement is a painful compromise with which we as employers have pushed the boundaries of what is feasible after unusually long and extremely difficult negotiations,” said Volker Schlinge, chairman of the collective bargaining and social policy committee of the Federal Association of Wholesale, Foreign Trade and Services (BGA). “The agreement will place a heavy burden on companies.”
But the three-year term achieved for the first time gives companies a degree of planning security “that is particularly valuable in economically challenging times,” it continued. With the new pension provision component, the collective bargaining partners wanted to try to take a new path together to position wholesale and foreign trade as an attractive employer. This part of the agreement still needs to be designed. “We still have a lot of joint work ahead of us here,” said Schlinge.