Public Sector Wage Talks in Germany Collapse, Mediation to Begin

Negotiations between unions and employers fail after four days, with independent mediators stepping in to address disputes over pay and working conditions for 2.5 million workers.

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.