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German public wage deal

Richard ConnorMarch 31, 2012

German public sector workers are to get a pay rise of 6.3 percent over two years after talks ended a labor dispute that has disrupted services across the country.

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Image: dapd

German Interior Minister Hans-Peter Friedrich announced the breakthrough over public pay on Saturday morning after an all-night meeting in Potsdam.

"This wasn't a marathon, it was more like an Ironman triathlon," Friedrich told reporters, adding that the employers had gone as far as they possibly could.

Verdi, one of the largest and most influential unions in Germany, representing 2 million public-sector workers, had been seeking a 6.5 percent annual rise following years of modest increases.

The latest agreement is for a 6.3 percent rise. An earlier offer of 3.3 percent, also staggered over two years, had been rejected.

Leader of Verdi, Frank Bsirske, said it had been difficult to accept the latest deal, but said the union had gone some way to narrowing the gap between public sector and private sector rises.

The deal comes after the threat of a broader walkout after a number of warning strikes that disrupted Europe's largest economy. The deal is likely to serve as a model for other public sector unions in Germany.

rc/nk (Reuters, dpa)