Collective bargaining agreement between the states: Public sector employees get more money

Collective bargaining agreement between the states
Public sector employees get more money

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In the negotiations for 1.1 million public sector employees, trade unions and the collective bargaining community come to a common denominator. The package is not unusual: it corresponds to the conclusion for the federal and local public services from April.

Employees in the public sector in the federal states receive more money. The leaders of Verdi and the Civil Service Association dbb agreed with negotiators from the Collective Bargaining Association of German States (TdL) on a deal with one-off payments, basic amounts and percentage increases. “The collective agreement result could only be achieved because tens of thousands of employees put pressure on employers with strikes across the entire public service sector in the federal states. This pressure made the agreement possible in the first place,” explained Verdi boss Frank Werneke.

The more than one million employees are promised tax- and duty-free special payments totaling 3,000 euros. This December, collective bargaining employees will initially receive 1,800 euros and a further 120 euros per month up to and including October. In November 2024, the fees will be increased by a base amount of 200 euros, and then by a further 5.5 percent from February 1, 2025. If the qualification is transferred to civil servants as usual, more than three million employees will be affected. Trainees and interns receive inflation compensation of 1,000 euros in December. Apprentice salaries will rise by 100 euros from November 2024 and later by another 50 euros.

The unions went into the collective bargaining round demanding 10.5 percent more income and at least 500 euros more money for the employees. The agreement reached at the end corresponds to the result for the federal and local public services from April.

The employers’ negotiator, Hamburg’s Finance Senator Andreas Dressel, spoke of a compromise that would not be easy for both sides. “Public budgets are in crisis mode, and at the same time it is becoming more difficult for us as countries to recruit and retain staff.” After “very difficult and lengthy negotiations” it was possible to reach “a conclusion that was fair for the employees overall and just about feasible for the state budgets.”

The head of the civil service association dbb, Ulrich Silberbach, had previously spoken of arithmetic games on the part of the TdL. For example, “reasonable staffing” is necessary for internal security and good education in Germany. But the reality of the public service is: “Today there is a shortage of 300,000 employees in the classic administrative service.” Without a better collective agreement, the personnel situation risks deteriorating further in times of inflation.

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