Workplace Report March 2013

European news

Above-inflation rise agreed in German public sector

Unions have reached an agreement on a pay rise for the around 800,000 public sector employees working at the regional level in Germany.

The deal, signed on 9 March covers all German regions (Länder) with the exception of Hesse, which has a separate settlement. It provides for an above-inflation increase of 2.65% backdated to January this year and a further 2.95% paid in January 2014. Prices in Germany are currently rising at 1.5% (February).

In addition, agreement was reached on 30 days a year leave for all employees (previously arrangements varied slightly from region to region); and the employers agreed to discuss the use of temporary contracts with the union.

Frank Bsirske, president of Verdi, the largest union involved, said the agreement means that regional employees “keep up with salary developments in the rest of the public sector and the overall economy”.

However, the deal did not include a settlement on a common national approach to teachers’ pay. At present there are wide variations between regions on where teachers are placed on pay scales.

The teachers’ union, GEW, described this as a “provocation” and Ilse Schaad, who led the negotiations for the GEW, said the union would now look at its options, which “of course include strikes”.