Overview

• The third round of wage negotiations for public sector employees began Friday in Potsdam and has yet to reach an agreement.
• Unions Verdi and dbb Beamtenbund are demanding an 8% pay raise, or at least €350 more per month, and three additional vacation days annually.
• Employers, including the Interior Ministry and the Association of Municipal Employers (VKA), argue the demands are too costly, estimating them at €15 billion annually for municipalities.
• Key sticking points include the unions' call for more vacation days, which employers say could lead to service reductions such as shorter daycare hours.
• If no agreement is reached, options include a fourth negotiation round, the involvement of an independent arbitrator, or renewed strikes by public sector workers.