Public service
Commission presents arbitration award for tariff dispute
After warning strikes and the failure of collective bargaining for the public sector, a conciliation commission was set up. photo
© Sina Schuldt/dpa
The Arbitration Commission has made a proposal for a wage increase and one-off payment in the public sector. The collective bargaining parties will negotiate again on April 22nd.
In its ruling, the arbitration commission in the collective bargaining dispute for the federal and local public services proposed a minimum amount of 200 euros and a subsequent increase of 5.5 percent. This was announced by the collective bargaining parties.
If no increase of EUR 340 is achieved, the amount in question will be set at EUR 340. According to the arbitration award, the term of the agreement should be 24 months, effective from January 2023.
“As arbitrators, we have taken a new path: there will be inflation compensation for 2023, and from March 1, 2024 there will be a base amount combined with a linear increase,” said the chairman of the arbitration commission, Hans-Henning Lühr. “The mix is a fair balance of interests, which of course also requires a lot of money.”
The former Bremen State Councilor Lühr was appointed by the employee side as arbitrator. The employer side had appointed the former Prime Minister of Saxony, Georg Milbradt.
The Commission also recommended an inflation adjustment totaling 3,000 euros. Different rules should apply to students, trainees and interns. They are to initially receive inflation compensation of EUR 620 and from July 2023 EUR 110 per month. Trade unions and employers are now discussing the recommendation individually and then want to meet again for negotiations next Saturday.
An arbitral award is only a recommendation
The arbitrator’s verdict now increases the pressure on the parties to the collective bargaining agreement to find an agreement. However, an arbitral award is only a recommendation. The negotiations could still fail again. In that case, a ballot would be held. In addition, if the unions failed, they would no longer have a peace obligation and could strike again.
Employers and unions had already fought in three rounds over the income of 2.5 million federal and local employees in the past few months. Affected are, among other things, educators of day-care centers, employees of garbage disposal and local transport companies, ground staff at airports and members of many other professions.
In March, Verdi and the civil servants’ association dbb declared the talks to have failed. The Association of Municipal Employers’ Associations (VKA) and the Federal Ministry of the Interior then called arbitration, hoping for a solution. The arbitrators probably negotiated at a secret location based on the current status of the negotiations.