Is Germany about to see an end to months of public sector strikes?
After negotiations collapsed back in March, an arbitration committee has put forward a deal they hope will solve the deadlock between employers and the public sector union Verdi. But is there really hope of a resolution?
It was revealed not with a bang but a whisper: the pay deal that's intended to end months of wrangling between one of Germany's largest unions and local governments.
On Saturday, a document was quietly distributed by the services union Verdi to the press via email - but unlike their usual media statements, it lacked the usual fanfare and fighting words. That's because the trade unionists are currently constrained by a so-called "enforced armistice" that prevents them from commenting on the offer or calling further strikes for the time being.
The armistice has been in place since talks between Verdi and public sector employers broke down in March, prompting the start of a process known as arbitration.
LISTEN: PODCAST: Berlin’s topless swimming row, strike season and German tipping culture
Since then, a third-party committee has been thrashing out a compromise deal that could resolve the conflict over pay. This has now been circulated to the media.
Apparently, the agreement was voted through by the Arbitration Committee by an "overwhelming majority". But what exactly is in this new pay offer, and could it really be enough to satisfy Verdi's demands?
Here's what we know so far.
Inflation compensation - but a smaller pay rise
At the heart of the latest proposals are monthly, tax-free bonuses designed to dampen the impact of inflation. These would be given to public sector workers in areas such as transport, administration and refuse collection.
For this year, the Arbitration Committee suggests a one-off payment of €1,240 in June, followed by monthly payments of €220 from July 2023 until February 2024 - so an additional €3,000 of tax- and insurance-free money in total.
After that - so from March 2024 - employees would get a base-level increase of €200 per month, followed by a linear pay increase of 5.5 percent or a minimum of €340 extra per month.
The pay increase for students, trainees and interns would follow a similar timeline - though this group of workers would be getting a lot less. In June, they could look forward to an additional €620 in their pay packets, followed by €110 and then €150 extra per month.
The duration of the agreement would be 24 months.
Commenting on the deal, Prof. Dr. Georg Milbradt, the former state premier of Saxony who was representing the employer side on the committee, praised the proposals.
"Taking into account the high inflation rates, the interests of the employees but also of the tax and fee payers, I can support the recommendation of the conciliation commission despite the unusual amount," he explained. "I hope for a quick and amicable settlement of the collective dispute on this basis."
READ ALSO: IN PICTURES: German workers down tools in unprecedented strike action
How does this compare to previous offers?
As far as Verdi are concerned, the latest deal could represent a significant step down from their current demands.
The services union has been calling for a 10.5 percent pay rise for workers in the public sector - or a minimum of €500 extra per month - for workers at all levels of the public sector.
They argue that the cost of living has been hitting their members hard and say the high pay rise would compensate not only for the inflation in 2023, but also the sky-high inflation that occurred last year, when no new deal could be negotiated.
A flag of the Verdi trade union flies during one of their warning strikes in front of the Charite hospital in Berlin-Mitte. Photo: picture alliance/dpa | Fabian Sommer
They are also keen to restrict the duration of the new contract to just 12 months, rather than the 24 proposed by the Arbitration Committee. That's because a shorter term gives them a chance to go back to the negotiating table and call for higher pay again next year.
On the employers' side, the latest offer includes a one-off €3,000 payment to combat inflation, alongside an eight percent pay rise or a minimum of €300 extra per month.
However, they were keen to ensure that any new deal would last for at least 27 months.
What happens next?
There is no obligation on either side to accept the Arbitration Committee's proposals. Instead, they will be taken as a starting point for another round of talks that will kick off April 22nd in Potsdam.
So far, the end point of the talks hasn't been predetermined, but if the two sides are still unable to agree then it's likely that Verdi could call what's known as an "enforcement strike".
READ ALSO: What are the chances of unlimited strikes in Germany?
Under German law, unions can call short warning strikes while negotiations are ongoing, but they can only turn to enforcement strikes after all other options have failed.
Unlike warning strikes, enforcement strikes don't have to have an end date - in other words, they are unlimited strikes - and could only be called off when one side caves in.
If this happens, there could be days or even weeks or disruption on public transport, bin collections, administration, clinics and airports in Germany.
Airport strikes
While the arbitration for public sector pay has been rumbling on in the background, Verdi has been carrying out more tough negotiations for its members in other sectors, from paper and plastic production to retail.
On Tuesday, the union announced it would be calling a two-day strike at three airports across Germany - Cologne, Düsseldorf and Hamburg - over hours and pay for security and service staff.
This will run from Wednesday night to late on Friday evening and is expected to cause major delays and disruptions in passenger air traffic.
READ ALSO: Travel chaos expected at German airports as security staff plan strike
Discussing the actions of the Federal Association of Aviation Security Companies (BDLS), Verdi secretary Özay Tarim said the union would "have to react" to the fact the employers were standing in the way of collective bargaining.
The union also accused the employers of "playing for time" and called on them to present a "serious" offer at the next round of negotations on April 27th and 28th.
Verdi is currently negotiating on behalf of employees in security and customs with regard to overtime pay during anti-social hours such as night shifts, weekend shifts and shifts on public holidays.
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It was revealed not with a bang but a whisper: the pay deal that's intended to end months of wrangling between one of Germany's largest unions and local governments.
On Saturday, a document was quietly distributed by the services union Verdi to the press via email - but unlike their usual media statements, it lacked the usual fanfare and fighting words. That's because the trade unionists are currently constrained by a so-called "enforced armistice" that prevents them from commenting on the offer or calling further strikes for the time being.
The armistice has been in place since talks between Verdi and public sector employers broke down in March, prompting the start of a process known as arbitration.
LISTEN: PODCAST: Berlin’s topless swimming row, strike season and German tipping culture
Since then, a third-party committee has been thrashing out a compromise deal that could resolve the conflict over pay. This has now been circulated to the media.
Apparently, the agreement was voted through by the Arbitration Committee by an "overwhelming majority". But what exactly is in this new pay offer, and could it really be enough to satisfy Verdi's demands?
Here's what we know so far.
Inflation compensation - but a smaller pay rise
At the heart of the latest proposals are monthly, tax-free bonuses designed to dampen the impact of inflation. These would be given to public sector workers in areas such as transport, administration and refuse collection.
For this year, the Arbitration Committee suggests a one-off payment of €1,240 in June, followed by monthly payments of €220 from July 2023 until February 2024 - so an additional €3,000 of tax- and insurance-free money in total.
After that - so from March 2024 - employees would get a base-level increase of €200 per month, followed by a linear pay increase of 5.5 percent or a minimum of €340 extra per month.
The pay increase for students, trainees and interns would follow a similar timeline - though this group of workers would be getting a lot less. In June, they could look forward to an additional €620 in their pay packets, followed by €110 and then €150 extra per month.
The duration of the agreement would be 24 months.
Commenting on the deal, Prof. Dr. Georg Milbradt, the former state premier of Saxony who was representing the employer side on the committee, praised the proposals.
"Taking into account the high inflation rates, the interests of the employees but also of the tax and fee payers, I can support the recommendation of the conciliation commission despite the unusual amount," he explained. "I hope for a quick and amicable settlement of the collective dispute on this basis."
READ ALSO: IN PICTURES: German workers down tools in unprecedented strike action
How does this compare to previous offers?
As far as Verdi are concerned, the latest deal could represent a significant step down from their current demands.
The services union has been calling for a 10.5 percent pay rise for workers in the public sector - or a minimum of €500 extra per month - for workers at all levels of the public sector.
They argue that the cost of living has been hitting their members hard and say the high pay rise would compensate not only for the inflation in 2023, but also the sky-high inflation that occurred last year, when no new deal could be negotiated.
They are also keen to restrict the duration of the new contract to just 12 months, rather than the 24 proposed by the Arbitration Committee. That's because a shorter term gives them a chance to go back to the negotiating table and call for higher pay again next year.
On the employers' side, the latest offer includes a one-off €3,000 payment to combat inflation, alongside an eight percent pay rise or a minimum of €300 extra per month.
However, they were keen to ensure that any new deal would last for at least 27 months.
What happens next?
There is no obligation on either side to accept the Arbitration Committee's proposals. Instead, they will be taken as a starting point for another round of talks that will kick off April 22nd in Potsdam.
So far, the end point of the talks hasn't been predetermined, but if the two sides are still unable to agree then it's likely that Verdi could call what's known as an "enforcement strike".
READ ALSO: What are the chances of unlimited strikes in Germany?
Under German law, unions can call short warning strikes while negotiations are ongoing, but they can only turn to enforcement strikes after all other options have failed.
Unlike warning strikes, enforcement strikes don't have to have an end date - in other words, they are unlimited strikes - and could only be called off when one side caves in.
If this happens, there could be days or even weeks or disruption on public transport, bin collections, administration, clinics and airports in Germany.
Airport strikes
While the arbitration for public sector pay has been rumbling on in the background, Verdi has been carrying out more tough negotiations for its members in other sectors, from paper and plastic production to retail.
On Tuesday, the union announced it would be calling a two-day strike at three airports across Germany - Cologne, Düsseldorf and Hamburg - over hours and pay for security and service staff.
This will run from Wednesday night to late on Friday evening and is expected to cause major delays and disruptions in passenger air traffic.
READ ALSO: Travel chaos expected at German airports as security staff plan strike
Discussing the actions of the Federal Association of Aviation Security Companies (BDLS), Verdi secretary Özay Tarim said the union would "have to react" to the fact the employers were standing in the way of collective bargaining.
The union also accused the employers of "playing for time" and called on them to present a "serious" offer at the next round of negotations on April 27th and 28th.
Verdi is currently negotiating on behalf of employees in security and customs with regard to overtime pay during anti-social hours such as night shifts, weekend shifts and shifts on public holidays.
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