Dispute settled
February 28, 2010
The terms, which were announced late on Saturday, February 27, stipulate that the salaries of employees from federal and local authorities will be increased gradually to around 2.3 percent by 2011.
Furthermore, the new collective bargaining agreement creates arrangements for partial retirement at the age of 60, and guarantees employment for trainees who successfully pass the requisite testing.
The lead negotiator for the government, Interior Minister Thomas de Maiziere, praised the agreement, calling it a "responsible compromise" that would not overly strain public funds.
The new agreement will affect about 2 million employees.
De Maiziere recommended that the new tariff agreement be applied to other government workers as well.
No cause for celebration
The workers' union, however, was less enthusiastic.
"Although [the agreement] is more than what was expected from the employers during the talks, it is less than what many had hoped for and what would have been necessary," said Ver.di president Frank Bsirske
The union originally entered the negotiations in January seeking a 5-percent increase, which they later reduced to 3.5 percent.
Under the agreement, public workers will receive a retroactive 1.2 percent increase effective January 2010, which will be increased incrementally until it reaches 2.3 percent in the summer of 2011.
The agreement also includes a 'social component' calling for a one-time payment of 240 euros ($310) in January 2011.
A burden for communities
Employers welcomed the development of performance-pay and the implementation period of 26 months. However, for many local communities, the additional money represents "a considerable burden," said president of the VKA municipal employers association, Thomas Boehle.
"The situation of local budgets is as bad as ever," he said, referring to the many municipalities in Germany that are already operating in the red.
According to Boehle, the agreement would be "painful" for many cities and communities.
In the months leading up to the negotiations, thousands of public sector workers staged temporary strikes, bringing buses and trams in parts of the country to a standstill.
smh/dpa/afpd
Editor: Toma Tasovac