Tariff dispute: Union in the public service of the federal government and municipalities

Unions and employers have reached an agreement in the collective bargaining dispute at the public service of the federal government and the municipalities. Accordingly, the more than 2.5 million employees get more money in two stages, as both sides announced in Potsdam.

Federal Interior Minister Nancy Faeser praised the conclusion: “We have achieved a tariff, which brings a good balance in difficult times. We make working conditions in the public service more flexible, more modern and attractive.” The new collective agreement is a sign of respect for the employees and in front of what the busy public service did.

Verdi boss Frank Werneke said for the employee side that the acceptance of the result was not easy for the union: “It is a difficult result in difficult times.” The negotiator of the DBB civil servant association, Volker Geyer, nevertheless emphasized: “In this unification, everyone can find themselves.”

Evaluation according to arbitration saying

The settlement essentially follows a recommendation of arbitrators from the end of March. Accordingly, income will increase by three percent from April 1, 2025, but at least 110 euros a month; As of May 1, 2026, another 2.8 percent. The 13th monthly content is to be increased.

The package also includes higher shift allowances. The new collective agreement should run retrospectively from January 1, 2025 for 27 months. For so long warning strikes or strikes in this part of the public service should be off the table. Negotiations will be made separately for the employees of the federal states in autumn.

Part of the Potsdam unification package are also more flexible regulations during working hours and days off. From 2027 there should be an additional vacation day. In addition, it should be possible for most employees to convert parts of the 13th month into up to three days off. Special rules apply to municipal hospitals. Employees should be able to increase their working hours to up to 42 hours a week voluntarily and limited.

According to the negotiation circles, there were concerns from the unions against this point. They fear pressure on employees to work longer. Finally a compromise was found. “Nobody can be pushed to work more – that is part of the collective agreement,” said Werneke. “If you work more voluntarily, you will get a surcharge for the additional hours.”

Employees in important jobs

The more than 2.5 million employees at the federal and municipalities work in a variety of important jobs from administration to daycare centers and garbage disposal to local transport and airports. The tariff conflict touched many citizens because there have been warning strikes again and again since January.

For the employees, the unions Verdi and DBB civil servants’ association sat at the table, for the employers the association of municipal employers VKA and the Federal Ministry of the Interior. After three rounds, the negotiations had been declared failed in mid -March. This was followed by arbitration led by the former CDU politician Roland Koch and the former Bremen State Councilor Henning Lühr (SPD). Although the cornerstones were clear, the fourth round of negotiations in Potsdam was only very tough.

Originally higher demands

The unions originally demanded eight percent more money, but at least 350 euros more a month, as well as at least three additional days off a year. They wanted the collective agreement to run only for a year. This described the employer side as not affordable.

In the third round of negotiations, employers were reported that an increase in the fees by 5.5 percent and a higher 13th monthly salary and higher shift allowances. The term remained open. That was not enough for the unions. Ultimately, the employer called the arbitration because the unions would have moved too little.