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Final in the state collective bargaining dispute

In the wage dispute for the federal states, the unions want to get the most for those who earn the least. The possible final round will take place on Thursday.

Clenched fist at a protest in the public sector wage dispute in Stuttgart. Photo.aussiedlerbote.de
Clenched fist at a protest in the public sector wage dispute in Stuttgart. Photo.aussiedlerbote.de

Final in the state collective bargaining dispute

The Cologne Institute for Economic Research(IW Köln) has warned of the possible consequences of a settlement ahead of the possible final round of collective bargaining for the public sector in the federal states. After two rounds of negotiations and weeks of warning strikes, employers and employees will meet this Thursday in Potsdam for a possible final round in the wage dispute. This could lead to a breakthrough.

In an analysis published by the Deutsche Presse-Agentur, the IW, which is close to employers, warns of disproportionately high increases for lower wage groups. The incomes of low-skilled workers have already been raised at an above-average rate. According to the IW, the trade unions are now aiming to "support lower income earners in particular, who are suffering more from inflation".

Wage gaps narrowed

According to the IW, earlier negotiations for the public sector had already led to corresponding across-the-board increases resulting in a "compression of the wage structure". This means that the gap between the wages of low-skilled workers and skilled workers is reduced. "This makes skilled jobs less attractive compared to less skilled jobs," warns the IW in its analysis.

In the current wage dispute over the income of state employees, the trade union Verdi and the civil servants' association dbb are demanding a 10.5 percent wage increase from the states, but at least 500 euros more. The employers of the Tarifgemeinschaft deutscher Länder (TdL) have rejected the demands. According to the TdL, the 500 euros demanded would lead to an increase of up to 23.9 percent in the lower pay groups. In total, it put the potential costs of fully implementing the union's demands at 20.7 billion euros.

Increasing strikes expected

For days now, employees at university hospitals, universities and administrations have been holding warning strikes to defend their interests in the wage dispute. It is expected that the strikes will increase in intensity until the third and possibly decisive round of negotiations from December 7 to 9 in Potsdam.

Above-average increases

The IW had calculated how salaries in the lower wage groups in the collective agreement for the public sector for the federal government and local authorities (TVöD) and in the collective agreement for the public sector of the federal states (TV-L) have developed over the years. When the TVöD and TV-L were introduced in 2005/2006, the basic salaries of employees in the pay groups examined did not differ across all qualification levels.

To date, however, employees in the lower salary groups of the federal states have already received above-average increases, while employees in the upper groups have received below-average increases. Although employees in the lower wage groups have also benefited the most from the TVöD, salaries in the upper groups have since risen more than those in the middle groups.

According to the IW, it was only the most recent agreement in April that led to a smaller gap between the upper and lower wage groups at federal and municipal level. "These effects should be avoided in the negotiations on the TV-L, as the wage structure is already more compressed anyway." The gaps have therefore already narrowed in recent years.

Lesen Sie auch:

  1. The wage dispute in the public sector in Germany is set for a potential final round of collective bargaining in Potsdam, following two rounds of negotiations and weeks of warning strikes organized by employees.
  2. According to the German Press Agency, the Cologne Institute for Economic Research (IW Köln) has issued a warning about the potential consequences of a settlement, expressing concerns over disproportionately high wage increases for lower-income earners.
  3. The IW, which is generally supportive of employers, argues that trade unions aim to help lower-income earners affected by inflation during the collective bargaining conflict.
  4. Previous negotiations for the public sector resulted in across-the-board increases, leading to a narrowing of wage gaps between less-skilled and more-skilled workers in Germany.
  5. Employers in the Tarifgemeinschaft deutscher Länder (TdL) have rejected the union's demands, which include a 10.5 percent wage increase and a minimum of 500 euros, fearing that the costs of implementing full demands could amount to 20.7 billion euros.
  6. In the current dispute, warning strikes have been ongoing for days at university hospitals, universities, and administrations across Germany, with a possible escalation expected during the final round of negotiations in Potsdam.
  7. Based on historical analysis of the collective agreement for the public sector in Germany, the IW has found that lower wage groups have experienced above-average wage increases, while upper wage groups have seen below-average increases since the introduction of TVöD and TV-L agreements in 2005/2006.
  8. To prevent further narrowing of wage gaps, the IW advises against specific wage increases in the final round of negotiations for the TV-L, emphasizing the already compressed wage structure in the lower and upper wage groups in Germany.

Source: www.stern.de

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