Daycare parents, commuters and passengers could be affected by possible public service deficits in winter. Even the start of the wage round is dominated by the energy price crisis.
In the midst of the inflation and energy price crisis, eyes are on the forthcoming public sector pay round. Around 2.5 million municipal and federal employees can hope for more money. It is unclear how much it will be and what the path to a result will be.
When will negotiations take place?
The negotiations between the trade unions Verdi and the civil servants’ association dbb on the one hand and the association of municipal employers’ associations (VKA) and the federal government on the other are scheduled to begin in January. The Verdi and dbb collective bargaining committees want to decide on their demands this Tuesday. They will be presented immediately afterwards in the afternoon.
What are the unions asking for?
“A high demand” has already been announced by dbb boss Ulrich Silberbach in an interview with the German Press Agency: “The employees should be given the security that they will not have to accept any loss of real wages.” Verdi boss Frank Werneke told the dpa: “In view of the inflation trend, the expectations of employees in the public sector are high, and those on low or medium incomes in particular are suffering from the rising prices.”
How can the goal of inflation compensation be achieved?
The inflation rate was last at 10.0 percent in September. In ranks of the trade unions it was discussed whether, instead of a specific percentage, it should be demanded that the employees receive an increase above inflation. Nevertheless, as usual, a percentage should be at the center of the list of demands. Silberbach: “The percentage has the advantage that it is safe and the employer cannot try to calculate it down.”
How should people in lower salary brackets be helped?
Werneke let it be known months ago that in addition to inflation compensation, a strong focus should be placed on the lower salary brackets. Before the crucial consultation of the collective bargaining commission, the Verdi boss now specified: “When determining the claim, a minimum amount will certainly also play an important role.”
What role do crisis-related special payments play?
You can play an important role. Silberbach has already announced that this will be a topic of negotiation. Because Chancellor Olaf Scholz (SPD) had offered in September as part of his talks with employers and unions against inflation (“concerted action”) that the state waive additional payments from employers to their employees of up to 3,000 euros on taxes and levies. But Silberbach says: “We take a critical view of one-off payments because we need long-term inflation compensation that takes effect in the income tables.”
What are the trade unions based on?
Among other things, in the wage round of the metal and electrical industry. The IG Metall started the negotiations with a demand for eight percent more money over a period of one year – the employers are demanding a zero round in view of the gas crisis. A conclusion from Verdi and Lufthansa for the ground staff in the summer is also considered an orientation. There is more money in three stages: a fixed amount of 200 euros and two salary increases of 2.5 percent each over a period of 18 months.
Who will still feel something of the collective bargaining dispute?
Parents, commuters, passengers and other population groups across the country could be affected. Public sector warning strikes are not uncommon. According to internal statements by those involved, the willingness to strike is high at both Verdi and dbb.
Where could there be warning strikes?
Day care centers, hospitals, public order offices and road maintenance depots could be affected – as was the case with the last collective bargaining for federal and local governments in 2020. Two years earlier, protesting employees had also paralyzed local bus and train transport in several inner cities. The delays could also disrupt air traffic again – ground traffic services at the airports belong to the municipalities.
How do employers negotiate?
With warnings to restraint. The president of the VKA employers’ association, Karin Welge, said days ago, according to a statement: “The municipalities, municipal hospitals, savings banks and other municipal companies are under enormous financial pressure as a result of the effects of the corona pandemic and the Ukraine war.” Employers are just as affected by inflation as employees. Unions should make moderate demands.
What is the financial situation of the municipalities in concrete terms?
Different, but according to Welge the bottom line is bad. Many municipalities have significant old debts. The investment backlog of the municipalities amounts to around 159 billion euros. And inflation will result in far-reaching cost increases for cities and communities. Welge emphasized the security and benefits that public sector workers would have.
Source: Stern

Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.