Public Sector Wage Talks Begin with Strike Threats Looming

Unions representing 2.5 million workers demand higher pay and better conditions, while employers warn of financial constraints.

The first round of public sector wage negotiations between unions, federal, and municipal employers has started in Potsdam, covering 2.5 million workers in roles like healthcare, education, and emergency services.
Unions Verdi and the Beamtenbund are demanding an 8% pay increase or at least €350 more per month, alongside additional vacation days and flexible working arrangements.
Employers, including Federal Interior Minister Nancy Faeser and municipal representatives, argue that the demands are unaffordable, citing tight budgets and a potential €14.88 billion annual cost for municipalities.
Unions highlight severe staffing shortages, with 500,000 current vacancies and 1.4 million retirements expected in the next decade, warning of a potential collapse in public services if conditions do not improve.
Strike actions, similar to those seen during the last wage negotiations in 2023, remain a possibility if no progress is made in the upcoming February and March negotiation rounds.