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German Public Sector Wage Talks Collapse, Mediation Underway

Negotiations for 2.6 million workers failed as unions and employers remain divided, with mediators now tasked to find a resolution by early April.

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Mitglieder von Verdi mit Warnwesten und Transparenten.Sie fordern mehr Geld und mehr Zeit
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Overview

  • Unions demand an 8% wage increase or at least €350 per month, citing inflation and real wage losses, while employers offered a 5.5% increase over three years, which unions rejected.
  • The mediation process, led by Roland Koch (CDU) and Hans-Henning Lühr (SPD), imposes a 'peace obligation,' halting strikes until a recommendation is delivered by early April.
  • Union representatives criticize Koch's appointment, pointing to his history of privatization policies and perceived anti-union stance, raising concerns about impartiality.
  • Employers argue that meeting union demands would impose an annual cost increase of 11% on municipalities, which they deem financially unsustainable.
  • If mediation fails to produce an agreement, unions may escalate to indefinite strikes after early April, leaving the outcome uncertain.