Collective negotiations: more money and more flexible working hours in public service

That was a hard nut. Since January, employers and unions have been fighting over future income and working hours in the public service at the federal and municipalities. Again and again there were warning strikes – sometimes buses did not go, sometimes the trash remained, the daycare stopped. Simpled had to convey. Now there is finally a tariff. Other strikes are off the table. And a possible black and red coalition has at least one conflict less on the agenda. However, it has to adjust to billions of bills.

“We went to the border of what we can take with a difficult budget situation,” said the managing director Nancy Faeser (SPD) when she announced the agreement together with unions and municipalities on Sunday morning. Unions also said: “A difficult result in difficult times”. But ultimately succeeded.

Which professional groups benefit from the result?

The collective agreement concerns more than 2.5 million employees of the municipalities and the federal government. These are employees in the administrations, but also in daycare centers and schools, in local transport, in waste companies, in sewage treatment plants, bathrooms, care facilities or at airports. Usually the conclusion will be transferred to civil servants later, but this time the new federal government should only decide. Employees of the federal states, for example, are not affected, for example teachers for whom negotiations are made separately in autumn.

How much money is there more?

The employees should get more money in two levels: from April 1, 2025, three percent, but at least 110 euros more per month. Stage two will follow 2.8 percent from May 1, 2026. From July 1, 2025, allowances for shift work should also be increased from 40 to 100 euros and for change shift work from 105 to 200 euros. In addition, the 13th monthly salary should increase from 2026.

Verdi boss Frank Werneke calculated that the remuneration increased by around 230 euros for an educator in the term, for a garbage worker for 200 euros.

No, in addition, working hours should become significantly more flexible. For example, employees should be able to exchange parts of the increased 13th monthly salary in up to three additional free days. However, this does not apply to municipal hospitals, where employers find it difficult to replace. From 2027 there will be an additional vacation day.

At the same time, the employees from 2026 should be given the opportunity to voluntarily and limited their weekly working hours to up to 42 hours, i.e. to work more and earn more.

Who prevailed?

The package is diverse, both unions and employers have set some points – and had to swallow toads elsewhere. The unions would have liked to achieve even more, especially when it comes to flexible working hours, and want to add later tariff groups. The professions would have to become more attractive because there are hundreds of thousands of vacancies, said Werneke. In addition, the unions had to be satisfied with three so -called empty months, since the wage increase only applies from April and not in January. This saves employers a lot of money.

In return, the federal and municipalities had to accept that employees may work less in the future and that they have to stuff gaps more often. This can be difficult in professions with a shortage of skilled workers.

Finally, the talks at the suggestion to voluntarily expand the working hours to 42 hours per week. The unions feared disadvantages for new hires or temporary contracts if employees are not willing to increase. According to Werneke, it has now been agreed: “Nobody can be pushed to work more.” And if you work more voluntarily, you will also get a surcharge. The regulation is to be checked after five years.

Can the state afford the package?

There are additional costs for the federal government and the municipalities as employers, but at a very different amount. According to the Interior Ministry, around 1.94 billion euros for the federal government – calculated over the entire term of 27 months. That in itself shouldn’t be a big problem. However, the invoice does not yet take into account that the result is expected to be transferred to the officials – and then it should be significantly more expensive. All in all, the conclusion for the expectant coalition of CDU boss Friedrich Merz seems to be manageable.

This is more critical of the municipalities. Welge named costs of more than ten billion euros annually. And some municipalities are so indebted that they already have to save on the renovation of swimming pools and schools. In addition, there is the MAUE economic situation that will cost you trade tax revenue. The municipalities are simply underfunded, said Head of Union Werneke. “They bleed out.”

The district administrator from Meißen, Saxon, Ralf Hänsel (CDU), immediately complained that the result overwhelmed the cities and municipalities. The municipalities have had the highest financing deficit since reunification. The municipal employers’ association of Saxony voted against the conclusion, but now has to implement it.

Are there no more strikes now?

The collective agreement has a term of 27 months, but applies retrospectively from January 1, 2025. By the end of March 2027, there should be peace on the stream front. However, this only applies to this tariff conflict.

In Berlin, for example, bus and subway drivers could soon go on strike because they are paid according to a different collective agreement. At the end of the year, collective bargaining for the employees of the federal states – and warning strikes are at risk of employed teachers, for example.