Overview

• The third round of public sector wage negotiations in Germany ended without agreement, triggering a formal mediation process led by Roland Koch and Hans-Henning Lühr.
• Unions Verdi and dbb demanded an 8% wage increase or at least 350 euros more per month, plus three additional vacation days, citing severe labor shortages and inflationary pressures.
• Employers offered a 5.5% wage increase along with higher shift allowances and a larger 13th-month salary but rejected the vacation day demands, citing unaffordable costs of 15 billion euros annually.
• During the mediation process, a 'peace obligation' temporarily halts further strikes, which had previously disrupted essential public services like childcare, waste management, and healthcare.
• The mediation process is expected to conclude by early April, with unresolved issues potentially leading to further strikes if no compromise is reached.