For months there has been little movement in the retail tariff dispute. The first agreement in a tariff area has now been achieved. It could be a model for all other regions.
The collective bargaining conflict in the retail sector could be on the verge of a solution nationwide. An agreement was reached for the Hamburg collective bargaining area that provides for a significant wage increase in several stages. The Verdi union and the trade association then spoke of a breakthrough.
Verdi was confident that collective agreements would now be concluded in the other districts based on the Hamburg model. The retail sector in Germany has around five million employees.
Wage increase in three stages
For the approximately 90,000 employees in Hamburg’s retail sector who are subject to social insurance contributions, an increase in wages in three stages was agreed, as Verdi and the North Trade Association announced: by 5.3 percent on October 1, 2023 and by 4.7 percent on May 1, 2024. In the third tariff year – from May 1, 2025 – the fees will initially increase by a fixed amount of 40 euros and then by a further 1.8 percent. The deal was reached late Wednesday evening after negotiations that lasted more than a year.
“This collective agreement represents an important step for employees in Hamburg’s retail sector,” said Heike Lattekamp, negotiator and deputy regional district manager of the union in Hamburg. “The employees finally have more money in their pockets and a noticeable relief in view of the increased prices.”
Inflation compensation premium and retirement provision
According to both sides, employers will pay an additional inflation compensation bonus of 1,000 euros for full-time employees and pro rata for part-time employees as of June 1, 2024. From January 1, 2025, employees should receive an additional 120 euros in collective pension provision annually, bringing the total to 420 euros annually. The term of the collective agreement is 36 months.
“This was long overdue. Our colleagues fought hard for a year,” as Silke Zimmer, Verdi federal board member responsible for trade, announced on Wednesday evening. “It is thanks to the courage and perseverance of our colleagues that thousands of employees in Hamburg are once again protected by a legally binding collective agreement.” Until the conclusion in Hamburg, numerous warning strikes and top-level talks had not been able to change the messy situation. Verdi entered the negotiations in all regions with a demand of at least 2.50 euros more per hour and a term of one year.
Source: Stern
