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BVG and Verdi Finalize Tariff Agreement, Averting Strikes

The deal includes incremental wage increases and a one-time bonus, though future labor disputes remain possible as the current contract expires later this year.

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Overview

  • BVG and the Verdi union have reached a tariff agreement following mediation by former ministers Matthias Platzeck and Bodo Ramelow.
  • The agreement provides a 430 EUR monthly pay raise in two phases, beginning with a 380 EUR increase on June 1, 2025, and an additional 50 EUR in June 2026.
  • A one-time bonus of 1,500 EUR will be paid for the first five months of 2025, alongside increases in allowances and holiday pay.
  • The deal avoids immediate strike actions, but the current contract expires at the end of 2025, leaving room for potential future disputes.
  • BVG faces financial strain due to the agreement, raising concerns about possible cost-cutting measures that could affect accessibility and essential infrastructure maintenance.