Unions expect offer
Agreement or strike: final in tariff poker is approaching
December 7, 2023, 6:40 a.m
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Showdown in the tariff poker of the federal states’ public services: The unions have been on strike at universities, university hospitals and administrations for weeks. This Thursday, employers and employees are coming to Potsdam for the possible finale of their negotiations. There are signs of a breakthrough – but it is far from certain. The most important questions and answers at a glance:
Who is affected by the negotiations?
The approximately one million collective bargaining employees in the states are directly affected. A qualification is usually transferred to civil servants – this means that there are more than three million people affected. Negotiations are taking place for teachers at schools and universities as well as for nurses and doctors at university hospitals. The penal system and justice system are just as affected as the daycare centers in Berlin. Hesse is not affected, as the state does not belong to the collective bargaining community of German states (TdL), with Verdi and the Civil Service Association dbb to sit at the table.
What are the unions demanding?
10.5 percent more income, but at least 500 euros more. Young talent should receive 200 euros more. The tariff period should be twelve months. For Berlin, Hamburg and Bremen, the unions are demanding a city-state allowance of 300 euros. “We are committed to making up for the loss of real wages,” Verdi boss Frank Werneke reiterated on Tuesday at a large demonstration in front of around 15,000 employees in Düsseldorf, with a view to the high inflation in Germany that has been going on for months.
What role does the current budget crisis play in the collective bargaining round?
Employers say they are narrowing their options. The chairman of the Collective Bargaining Association of German States (TdL), Hamburg’s SPD Finance Senator Andreas Dressel, puts the costs of fully accepting the union’s demands at 20.7 billion euros. According to Dressel, the effects of the Karlsruhe budget ruling could amount to a reduction in available funds amounting to tens of billions for the states. “Of course, this is something that the countries cannot easily compensate for,” said Dressel. This reduces the scope for distribution.
What are the negotiations based on?
At the end of April for the federal and local public service. After months of struggle and arbitration, the result included, among other things, tax- and duty-free special payments totaling 3,000 euros, a base amount of 200 euros and then 5.5 percent more. The unions also entered this collective bargaining round with a demand of 10.5 percent, or at least 500 euros more.
What significance does the conclusion of the federal and local governments have?
A big one, especially for the unions. “We have to close the gap with the federal and state governments,” said dbb boss Ulrich Silberbach. Verdi chairman Werneke said: “Tens of thousands of positions in the state’s public service are already unfilled.” The real challenge of generational change is still ahead. “Without appropriate pay that is comparable to that provided by the federal and local governments, the staffing situation will continue to deteriorate drastically.”
Do the states want to take over the conclusion of the federal and local governments?
They want to stay financially below that. But TdL boss Dressel thinks that “in terms of structure” the states could imagine adopting the collective bargaining results from April. You can then start “relatively quickly with a one-off payment”. However, according to TdL, a complete transfer of the agreement from the federal and local governments would cost around 17 billion euros – that is too much for employers.
So where are the sticking points?
Above all, there is the scope and possible levels of a linear increase, but also the meaning and design of one-off payments. The states do not agree at all with the required city-state allowance for Berlin, Hamburg and Bremen. According to Dressel, this would create “new problems” – after all, there are other metropolitan areas with high rental and living costs.
What are the scenarios for the current collective bargaining round?
Silberbach and Werneke first and foremost demand an offer from employers. Silberbach believes an agreement in Potsdam is entirely possible – several state finance ministers have expressed their willingness to do so. Dressel also says: “That is our firm will.” In view of the crisis-ridden times, a conclusion would be an important sign. But according to insiders, poorer countries are reluctant to accept what they consider to be too high a deal. The round of negotiations, which was actually scheduled to last two days, could stretch into the weekend.
What would be the consequences of a failure in Potsdam?
There is no arbitration agreement for the states like there is for federal and local governments. Werneke had pointed out the possibility of further negotiation dates if the third round failed. This could then be accompanied by further warning strikes. Silberbach refers to the strikes and actions of the past few weeks and “the anger and determination” of the employees. He even says: “Our colleagues are also capable of forcing strikes in many centrally important places at the state level.” The unions would have to initiate such a broad strike through a strike vote.