Will Germany see more strikes in public sector?

It’s been a turbulent start of the year for public services in Germany. Tough pay talks between employers and unions have led to a wave of strike action that has affected everything from parcel deliveries to local transport to waste removal. 

Recently, union Verdi announced it had negotiated higher salaries and extra holiday time for Deutsche Post employees in Germany. It has also secured a pay hike for regional journalists at the Westdeutsche Rundfunk (West German Radio). However, its biggest battle – the fight for better pay and conditions for 2.6 million workers in the public sector – is still being fought. 

On Friday, Verdi is sitting down once again for talks with government employers. The outcome of these talks will be crucial in deciding whether the country will be rocked by more public sector strikes or a relative period of calm.

READ ALSO: From transport to waste – The various strikes hitting Germany this week

What do we know about the latest talks?

This will be the third round of talks since public sector negotiations began on January 24th this year. They will be held in Potsdam, just southwest of Berlin, and will last three days – with the possibility of extending into Monday.

On the union side, Verdi will be joined by civil services union DBB, while the employers’ side will be represented by Interior Minister Nancy Faeser (SPD) and representatives of district authorities.

The talks relate to the renegotiation of the previous public sector pay contract (TVöD), which expired at the end of last year.

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This agreement covers salaries and working conditions for around 2.6 million government employees, including in local administrative offices, refuse collection, airports and public transports, schools and universities, and public swimming pools.

Verdi and DBB are pushing for an eight percent pay rise, or a minimum of €350 extra per month, as well as a €200 monthly pay rise for trainees. Other key demands include three extra days of annual leave per year and better compensation for working unsociable hours.

So far, employers have dismissed these demands as too expensive, but have not come up with a counter offer.

Who’s saying what?

Speaking to RND on Thursday, Karin Welge, chief negotiator for the municipal employers, rejected the unions’ demands as “unrealistic” given the economic situation in Germany.

“We have been in a recession for over two years and inflation has also fallen to around two percent for several months,” she said, adding: “The demands don’t at all fit the present moment.”

According to Welge, agreeing to Verdi’s proposals would result in additional costs of €15 billion per year – an unimaginable sum for communal employers. 

However, Interior Minister Faeser struck a more optimistic tone. “I am hopeful that we will find a fair result for all sides in the third round of negotiations,” she told reporters in Potsdam, adding that she was hopeful of concluding talks “by Sunday evening”. 

Interior Minister Nancy Faeser (SPD). Photo: picture alliance/dpa | Britta Pedersen

Previously, the SPD politician had described the union proposals as “very high” and pointed to tight budget constraints in the municipalities.

For its part, union DBB has accused negotiators of a “blockade” and said the government should be investing in the country’s future. 

“The ball is in the court of the federal government and local authorities,” said DBB negotiator Volker Geyer. “While the CDU, CSU and SPD are putting together huge investment packages in Berlin, the political leaders here in Potsdam are threatening to gamble away the future of us all with their obstructive attitude.”

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Speaking ahead of the talks, Verdi chairman Frank Werneke expressed frustration that the employers still hadn’t put together a counter-offer.

“The fact that no offer has been made and at the same time the federal government and local authorities have declared that they are more or less aiming for a zero pay increase is causing indignation among Verdi members,” he said. 

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Could Germany see more strikes?

That all depends on the outcome of the latest round of negotiations. If the unions and employers remain at a deadlock, it’s likely to pave the way for a longer and even more intense round of public sector strikes.

In Berlin, for example, Verdi is threatening so-called “unlimited” strikes if the transport operator BVG doesn’t make an acceptable offer by March 21st. In the wider public sector negotiations, the union has been a little more reserved, but has nonetheless been ramping up warning strikes in various regions and sectors of government over the past few weeks.

A Verdi representative hangs up a poster with the inscription “Warning strike” in a terminal at Hamburg Airport during a previous strike action. Photo: picture alliance/dpa | Bodo Marks

Speaking to SWR about the possibility of unlimited strikes, Verdi spokesperson Andreas Henke said a lot would depend on whether employers “bring a negotiable offer and whether they have moved on the key issues” in Friday’s talks.

Unlike warning strikes, which are used to raise pressure ahead of key talks, unlimited strikes generally last for several days or even weeks and are used to force negotiators to make concessions to the unions. In order to call this type of strikes, a large majority of union members must vote for industrial action following the collapse of talks.

READ ALSO: Jobs in Germany – Should foreign workers join a union?

Is there an alternative?

Though an escalation in the current conflict can’t be ruled out, there are a few other things that could happen on the back of the latest talk.

The first – and most desirable – option, is that government employers present a deal that both sides can work with. This could either lead to an immediately agreement or (more likely) pave the way for a fourth round of negotiations, with further warning strikes in the meantime. 

In the past, breakthroughs have been known to happen in the third round of negotiations, so this isn’t entirely unlikely. 

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Alternatively, the third round of negotiations could end once again in deadlock, with one or both parties deciding to initiate arbitration.

This would involve neutral parties entering the fray on both sides of the conflict and trying to thrash out a mutually acceptable deal.