Collective bargaining for the federal and local public sector has failed for the time being. Employers and unions did not achieve a result in the last of three planned rounds of negotiations, as the German Press Agency learned from negotiating circles in Potsdam early Thursday morning.
The collective bargaining round had previously been extremely difficult, and the mood between unions and employers was tense. On the one hand, this was due to the particularly high demand that Verdi and the civil servants’ association had published in the autumn: They demanded 10.5 percent more wages and a minimum monthly increase of 500 euros, which would have meant wage increases of up to 25 percent for many employees. The unions justified this with the high inflation, which was seven percent last year and is forecast to be similar for this year. And they pointed to the shortage of skilled workers in the public sector – an estimated 300,000 jobs are currently unfilled – and argued that the jobs urgently needed to be made more attractive.
While the federal government, for which Interior Minister Nancy Faeser (SPD) was negotiating, was more understanding, employer representatives from the municipalities firmly rejected the high demand. The financial situation of many municipalities is tense, it said. In North Rhine-Westphalia and Rhineland-Palatinate, for example, they suffer from high old debts, and many are not well positioned in the eastern German states either. Ralf Hänsel, District Administrator in Meissen and President of Saxon Employers, had promised that some municipalities would have to limit services, such as music schools, or increase fees in the event of such a high degree.
The numerous warning strikes, which Verdi in particular had called for, caused additional resentment. Daycare centers were temporarily closed, hospitals switched to emergency operations, and administrative employees stopped working. The highlight was a nationwide traffic strike last Monday, with which Verdi and the railway union EVG brought Germany to a standstill.
While the unions justified the warning strikes with the high degree of suffering among the employees and referred to the offer from the federal and local governments, which they saw as insufficient (five percent more wages for a period of 27 months, plus 2,500 euros for inflation compensation), the employers condemned the actions. “Rarely have I seen a country’s population affected in this way. We resolutely reject the strike measures,” said Karin Welge (SPD), chief negotiator for the municipalities, whose main job is mayor of Gelsenkirchen. In view of the many violent warning strikes in recent months, the employers’ association BDA has called for stricter regulation.
In the negotiations, according to reports, there had been a dispute about the monthly minimum plus of 500 euros demanded by Verdi and the civil servants’ association. This was important to the unions because it would have meant a particularly large increase for low-income earners. The employers denied a media report that there had already been an improved offer on Tuesday. In the negotiations, they called for stronger incentives for employees in the higher salary brackets, so that it would be more worthwhile to take on leadership responsibilities in the public sector. Verdi boss Werneke had described this as “crass antisocial”.