Pay talks collapse
February 11, 2010
The German interior minister, Thomas de Maiziere, announced on Thursday that talks between employers and unions had collapsed on the second day of the third round of negotiations. The two sides were discussing this year's pay round for 1.3 million government employees at the national and local level.
The unions, led by the major public service union verdi, had asked for a pay rise of 5 percent, arguing that government workers had fallen behind over the last few years, and that the recession needed well-paid workers to boost consumption.
The employers argued that the same recession had reduced their revenues drastically and that they were in no position to pay.
Arbitration agreed
Both sides blamed the other for the collapse of the talks, but they agreed to go to arbitration.
While arbitration is underway, the unions are required to desist from strikes. The arbitrators will try to find a compromise, on the basis of which the two sides are required to start talks again.
mll/dpa/AFP/Reuters
Editor: Rob Turner