Danish municipal workers pen deal

Unions representing some 500,000 local government workers have reached agreement on wage increases over the next two years.

The deal, signed on 17 February, provides for an increase of 0.7% this year and 1.2% in 2014. In the first year at least, it means that employees are settling for is less than inflation, which is currently 1.2% (February).

The settlement is a framework agreement setting overall figures, with precise pay increases to be negotiated locally. The deal keeps the so-called “security pool”, a pot of money to help those who loses their jobs retrain, as well as the ongoing link to pay increases in the private sector.