Resolving the Standoff on Collective Bargaining in Wholesale Sector - Finalized in Bavaria
Over several grueling months, businesses in the wholesale and international trade sector have been locked in tough talks with labor unions regarding a wage settlement for their workers. A middle ground was found in the Bavaria region, known for its extended duration, with both sides hoping for a trailblazing outcome.
In the ongoing wage dispute impacting roughly 1.9 million employees across the nation in the wholesale and international trade sector, the first agreement has been reached in Bavaria. The union Verdi hailed it as a breakthrough, while employers spoke of a groundbreaking accord. "We anticipate that the other wage districts will swiftly reach conclusions," said Verdi chairwoman Silke Zimmer. Verdi and the Bavarian Association of Wholesale, Foreign Trade, and Services (LGAD) had reached an agreement for 240,000 employees the previous night. The employers also mentioned, "It is expected that this result will serve as a foundation for further settlements in the other wage districts."
As per Verdi, a three-year agreement has been reached. Wages would increase by 5.1% retroactively to October 1, 2023. Starting May 1, 2024, they would rise by an additional 5.0%. Employees would receive an additional increase of 2.0% on May 1, 2025. Agreed upon was also an inflation adjustment premium of 1,000 Euro, which would not be deducted from previous payments. In addition, Verdi and the LGAD had agreed on a tariff pension of 480 Euro. They intended to begin talks on a mandatory pension scheme as soon as possible.
"The wage agreement is a painful compromise that we, as employers, have been forced to accept after unusually long and extremely tough negotiations," said Volker Schlinge, Chairman of the Tariff and Social Policy Committee of the Federation of Wholesale, Retail Trade, and Services (BGA). "The agreement will put a significant strain on the companies."
However, the initial three-year term provides companies with the financial stability they desperately need in challenging economic times. With the new pension plan, the negotiating parties aimed to find a new approach together to improve the wholesale and international trade sector as an appealing job market. This part of the agreement still needs to be finalized. "There is still a lot of joint work ahead of us," said Schlinge.
