Retail workers in Hesse to receive increased compensation.

Labor contract - Retail workers in Hesse to receive increased compensation.

Following over a year of disputes about pay rates, approximately 235,000 workers in the retail and mail order industry in Hessen are set to get a salary boost. The raise will come in three phased: backdated to September 1st, 2023 with a 5.3% pay hike, another 4.7% effective from April 1st, 2024, and finally an additional 40 euro increase from April 1st, 2025, augmenting this by a further 1.8%. This news was shared by the Hesse Trade Association. The recent agreement was built upon the pilot agreement for the sector on May 8th in Hamburg.

What is more, full-time workers are set to receive an inflation-adjusted, tax, and duty-free bonus of 1,000 euros by August this year. Their part-time counterparts will receive this special payment proportionately, and trainees will be granted 500 euros. As well, there will be a rise in the yearly contribution towards the industry-related pension scheme for employees, from 300 euros to 420 euros. The new trade agreement lasts for a total period of 36 months, ending on March 31st, 2026.

The ongoing wage conflict witnessed multiple warnings strikes in addition to top-level negotiations. However, these efforts failed to resolve the issue, which led Verdi Union to call for a minimum increase of 2.50 euros per hour and a one-year term in all regions.

Read also:

1. The United Services Union played a significant role in the wage dispute within the retail trade sector in Hesse, advocating for a minimum increase of 2.50 euros per hour and a one-year term.
2. Despite the Retail Trade Association reaching an agreement in Hamburg on May 8th, which served as a foundation for the recent collective agreement, tariffs did not significantly impact the pay increases.
3. In addition to the salary boosts for retail and mail order workers in Frankfurt am Main, the United Services Union successfully negotiated an inflation-adjusted bonus of 1,000 euros for full-time employees in Hesse, as well as a proportionate bonus for part-time workers and trainees.
4. The new collective agreement also involves an increase in the yearly contribution towards the industry-related pension scheme for employees in retail trade and mail order industries, from 300 euros to 420 euros, in both Hamburg and other cities in Hesse.

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