The trade unions want to secure the income of employees even in difficult times.
(Photo: IMAGO/snapshot)
Berlin The unions Verdi and the civil service association are demanding 10.5 percent more money for one year for the approximately 2.5 million employees in the federal and local governments. So that lower wage groups benefit more, there should be a minimum amount of 500 euros. The collective bargaining committees of the unions decided on Tuesday.
Inflation is tearing deep holes in employees’ budgets, said Verdi boss Frank Werneke. “Many of them don’t know how they can keep themselves and their families afloat, some can no longer pay their rent or heating costs.” That is why there is a need to secure income through inflation compensation, especially for employees with medium and rather low incomes at the center of the collective bargaining round.” The last collective bargaining agreement from 2020 led to real wage losses due to the pandemic.
With their demand, the unions surpass even the IG Metall, which demands eight percent more money for the approximately 3.9 million employees in the metal and electrical industry.
The negotiations, which begin in January, would certainly be “tough,” said Ulrich Silberbach, head of the civil service association. The high collective bargaining requirement also serves to make the public service more attractive as an employer. A look at the demographic development shows what an existential challenge recruiting young people has become for the federal government and local authorities. “We are already missing 360,000 people, and this number will grow quickly,” said Silberbach.
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The Association of Municipal Employers’ Associations (VKA) had warned in advance of exaggerated collective bargaining demands. In view of the pandemic that has not yet been overcome, the war in Ukraine and the extraordinarily high inflation, Germany has to overcome a large number of challenges that have not previously existed in such a concentrated way, said Karin Welge, President of the VKA and Mayor of Gelsenkirchen. “Therefore, we appeal to the unions to be moderate in their claim finding and to take the difficult situation of municipal employers appropriately into account.”
>> Read also: Civil Servants Association chief announces high wage demands for public service
She referred to the losses in trade tax in the wake of the corona pandemic or the acceptance of Ukrainian refugees by the municipalities. So far it is unclear how the current inflation will develop, said the SPD politician. “However, it also results in far-reaching cost increases for municipal budgets and municipal companies.”
Negotiations started in January
Irrespective of this, many municipalities and municipal institutions already have considerable old debts. In addition, the investment backlog of the municipalities amounts to around 159 billion euros.
The Federal Statistical Office published half-year data on public budgets on Tuesday. According to this, the income of the municipalities and municipal associations grew by ten percent in the first six months of the year – and thus more than the expenditure, which increased by 6.7 percent. The financing deficit was 1.6 billion euros. In the same period last year it was 5.7 billion euros.
>> Read here: Federal states have a surplus of almost 24 billion euros – Bavaria only ranks third
The federal government spent around 264.9 billion euros in the first half of the year – 6.9 percent less than in the first six months of the previous year. Income rose by 16.5 percent to 219.7 billion euros, the financing deficit was 45.2 billion euros, just under half as large as in the same period last year.
The start of negotiations between the trade unions, the federal government and the municipal employers is on January 24 in Potsdam. The second round will take place on 22./23. February instead, the third on 27./28. March. Verdi also negotiates for the police union, the education and science union (GEW) and the industrial union for construction, agriculture and the environment (IG BAU).
More: Government expects significantly less inflation in 2023 – gas and electricity price brakes should help