The conclusion for the employees of the federal and state governments, on which the negotiators agreed after a long struggle on Sunday night, has its price. According to employers, it will cost them tens of billions of dollars. The approximately 134,000 employees of the federal government covered by collective bargaining agreements and the more than 2.4 million employees covered by collective bargaining agreements of municipal employers will initially receive an "inflation compensation allowance" totalling 3000,<> euros in partial payments.
Manfred Schäfers
Business correspondent in Berlin.
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On the other hand, the collectively agreed wages will be adjusted on March 1, 2024: increased by 200 euros in a first step, and by another 5.5 percent in a second step. As a result, everyone should earn at least 340 euros more. Because the municipalities have significantly more employees covered by collective bargaining agreements than the federal government, they bear a much larger share of the additional costs, which are estimated at 17 billion euros.
Its chief negotiator, Karin Welge, then spoke of the most expensive collective bargaining agreement of all time. "This is because municipal employers will face permanent costs of around 13 billion euros as a result of the collective agreement." Interior Minister Nancy Faeser (SPD) estimated the costs for the federal government at around 3.75 billion euros annually from 2025.
Employers speak of an acceptable compromise
The Federation of Municipal Employers' Associations called the result an "expensive but ultimately defensible compromise". "However, with the long term of 24 months, which is so important for us, we have achieved our important goal of planning security," Welge emphasized. The increase in fees of up to 17 percent would significantly increase the attractiveness of the municipal public service.
In addition, it was possible to implement significant improvements in the area of hospitals and care facilities. According to her, the possibility of up to two levels higher remuneration was agreed for them in order to be able to recruit staff.
"With our decision to enter into this compromise, we have gone to the pain threshold," explains the chairman of the United Services Union (Verdi), Frank Werneke. The increase in remuneration by up to 16.9 percent as of March 2024 is positive. The agreement is based on the inflation compensation allowance of a total of 3000 euros, which is tax-free and exempt from social security contributions.
Politicians wanted to prevent further inflation from heating up
The traffic light had created this possibility in order to give the collective bargaining parties a chance to relieve the burden on employees without triggering a wage-price spiral. For the first time, employees of the municipalities and the federal government will receive an inflation compensation payment of 1240 euros in June. From July 2023 up to and including February 2024, they will each receive 220 euros net.
In March of next year, the agreed table increase of 200 euros plus 5.5 percent will follow. Students, trainees and trainees will initially receive half of the inflation compensation allowance provided for other employees. Subsequently, the training fee will be increased by 150 euros. The collective agreement runs until the end of 2024.
The trade unions had more far-reaching ideas, especially on issues such as duration and inflation compensation for part-time employees, reported the chairman of DBB Civil Servants' Association and Collective Bargaining Union, Ulrich Silberbach. "But more could not be enforced, especially with the municipalities."
Protest actions helped the trade union Verdi
This compromise, too, would not have been possible without the many warning strikes and protests of recent months. However, the income round for his organization is only over when the volume of the collective agreement is transferred to the area of salaries and pensions of the federal government at the same time and in accordance with the system.
The municipal employers calculate what the collective bargaining result means: A lawyer in pay group 14, level 6 will then receive an increase of around 572 euros, which corresponds to a pay premium of 8.7 percent. Including the inflation compensation money of 3000,12 euros, the percentage increase during the term is 5.<> percent.
"It was important to us that the higher pay groups also benefit from the collective bargaining result in order to be able to attract the urgently needed specialists and managers." A nurse in pay group 7, level 6, would receive around 426 euros more, which would correspond to a total increase of around 18 percent including the inflation compensation allowance during the term.