German government, unions reach pay deal for public workers

German government officials and labor unions have reached a pay deal for more than 2.5 million public-sector workers, ending a lengthy dispute and heading off the possibility of disruptive all-out strikes.

The ver.di union had pressed for hefty raises as Germany, like many other countries, grapples with high inflation. Interior Minister Nancy Faeser said as the deal was announced on April 23 that “we accommodated the unions as far as we could responsibly do in a difficult budget situation”, AP News reports.

The deal entails one-time payments totaling 3,000 euros ($3,300) per employee, with the first 1,240 euros coming in June and monthly payments of 220 euros following until February. In March, regular monthly payments for all will be increased by 200 euros, followed by a salary increase of 5.5%. The deal runs through the end of 2024.

Ver.di originally sought a one-year deal with a raise of 10.5%. The deal was reached on the basis of a proposal by arbitrators who were called in after talks broke down last month.