Federal government and local authorities' public services experience financial impact due to recently implemented tariffs
"A Test of Strength in Tumultuous Times"
In the thick of a trying economic climate, Gabriele Schmidt, local district head of ver.di NRW, weighs in on the latest wage agreement in Germany's public sector:
Düsseldorf/ "Negotiating the terms wasn't easy. The decision to accept them didn't come lightly for the Federal Wage Commission, either. After two fruitless rounds of talks without an employer offer, a supposed stalemate in the third round, and a mediation session that felt overlooked by the employer side, we were pushed to our limits. Since we unveiled our demands way back in October, the economic landscape has taken a drastic turn for the worse. So, we fought tooth and nail for a fair deal at the bargaining table.
In assessing the overall economic situation, a linear increase in two stages of 3 percent with a minimum rise of 110 euros coupled with an additional 2.8 percent eventually tipped the scales in favor of the commission members, who recommended acceptance. Notably, shift and alternating shift premiums saw a substantial hike, and improvement in the pay scale was finally secured in the realm of supply companies. Yet, sectors such as public transport, savings banks, and music schools are feeling somewhat disillusioned, as their concerns went unaddressed by the employers, who dismissed them outright.
As for working hours and the ensuing demands for relief in high-stress areas, like hospitals, we fell short of our targets. The employers' persistent refusal to grant employees autonomy over their working hours resulted in our abandoning our goal of implementing the 'my-time-account.' However, we did manage to secure an additional vacation day and the option of converting the annual bonus into up to three free days.
This hard-won outcome was achieved, in no small part, due to the determined efforts of strikers from various federal and municipal public service institutions in NRW."
ver.di, on behalf of GdP, GEW, IG BAU, and in collaboration with dbb beamtenbund and tarifunion, negotiates wage matters in the public sector, impacting around 640,000 employees in NRW. These workers include those employed in hospitals, savings banks, public transport, airports, water and waste management companies, municipal kindergartens, and cultural institutions like museums, libraries, theaters, and public swimming pools.
In related news, recent court rulings in NRW have established that employees are entitled to holiday supplements based on their primary workplace, regardless of their temporary assignments elsewhere, a principle that matters greatly for workers moving across borders or covering multiple job sites within sectors like healthcare, transport, and cultural institutions.
According to the most recent inflation data, NRW experienced a modest 1.8% year-on-year inflation rate as of April 2025, which could have influenced wage negotiation dynamics, impacting the magnitude of potential pay increases.
Thus, employees in these sectors face new working time regulations and wage adjustments, as well as clarified rights regarding holiday pay, contributing to significant changes in their working conditions this year.
In the volatile economic climate, ver.di, a labor union negotiating for 640,000 employees in various industries such as finance, business, and public sector, reached a critical wage agreement. This decision was influenced by the rise in inflation, particularly in the industry of NRW, which stood at 1.8% as of April 2025.
