Showdown in the wage poker of the federal states

Questions & Answers - Showdown in the wage poker of the federal states

Showdown in the public sector wage negotiations in the federal states: the unions have been on strike at universities, university hospitals and administrations for weeks. This Thursday, employers and employees met in Potsdam for the possible finale of their negotiations. There are signs of a breakthrough - but this is far from certain. The most important questions and answers at a glance:

Who is affected by the negotiations?

Around one million state employees are directly affected. Usually, an agreement is transferred to civil servants, which means that more than three million people are affected. Negotiations are taking place for teachers at schools and universities, for example, as well as for nurses and doctors at university hospitals. The penal system and justice system are just as affected as daycare centers in Berlin. Hesse is not affected, as the state is not part of the Collective Bargaining Association of German States (TdL), with which Verdi and the civil servants' association dbb sit at the table.

What are the unions demanding?

10.5 percent more income, but at least 500 euros more. Junior staff are to receive 200 euros more. The collective bargaining period should be 12 months. For Berlin, Hamburg and Bremen, the unions are demanding a city-state bonus of 300 euros. Verdi and dbb argue above all with the months of high inflation in recent months - the real wage loss should be compensated. Verdi boss Frank Werneke said at the start of the third round of negotiations in Potsdam: "The participation in strikes and demonstrations by state employees is better than it has been for a long, long time." This provides a tailwind.

What role is the current budget crisis playing in the collective bargaining round?

The employers say it is limiting their options. The chairman of the TdL, Hamburg's Finance Senator Andreas Dressel (SPD), puts the cost of accepting the union's demands in full at 20.7 billion euros. According to Dressel, the impact of the Karlsruhe budget ruling could result in a reduction in available funds in the double-digit billion euro range for the federal states. "Of course, this is something that the federal states cannot easily compensate for," said Dressel. This would reduce the scope for distribution.

What are the negotiations based on?

For Werneke, the "gold standard" is the agreement reached in April for the public sector at federal and local level. After months of wrangling and arbitration, the result included tax and duty-free special payments totaling 3,000 euros, a basic amount of 200 euros and a subsequent 5.5 percent increase. The unions had also entered this round of collective bargaining with the demand for a 10.5 percent increase, but at least 500 euros more.

What is the significance of the federal and local government agreement?

"We have to close the gap with the federal and state governments," said dbb boss Ulrich Silberbach. Werneke warned: "There is not a single argument for state employees to be paid less than federal and local government employees." Tens of thousands of positions in the public service of the federal states are already vacant. "Without appropriate pay that is comparable to that of the federal government and local authorities, the staffing situation will continue to deteriorate drastically."

Do the federal states want to adopt the federal and local government agreement?

They want to stay below them financially. However, TdL boss Dressel believes that "in terms of structure", the federal states could imagine adopting the pay settlement from April. It would then be possible to start "relatively soon with a one-off payment". Dressel now wanted to present an offer to the trade unionists. However, according to the TdL, a complete transfer of the federal and local government agreement would cost around 17 billion euros - too much for the employers.

So where are the sticking points?

Above all, the scope and possible stages of a linear increase, but also the significance and structure of one-off payments. The federal states do not agree at all with the demand for a city-state bonus for Berlin, Hamburg and Bremen. According to Dressel, this would create "new problems" - after all, there are other metropolitan areas with high rents and living costs. Werneke replied: "We are in no way opposed to thinking about creating a solution not just for city states, but for conurbations as a whole."

What else is at stake?

The unions are calling for wage regulations for student employees. Dressel said that the federal states could envisage a minimum wage "that is significantly higher than the minimum wage".

What are the scenarios for the current round of collective bargaining?

All sides believe that an agreement can be reached in Potsdam by Friday or, more likely, Saturday - Silberbach said that several state finance ministers had expressed their willingness to do so. Others reportedly fear high costs and are putting on the brakes. "The people in this country no longer have the nerve to be burdened with warning strikes in the public sector over the holidays," said Silberbach. Dressel said: "We are ready to negotiate, we are willing to compromise and we have the will to reach an agreement."

And if the negotiations initially fail?

Werneke has already warned that the employees are still prepared to go on warning strikes - if necessary, a fourth round of negotiations will be necessary. The negotiations could also drag on into the new year. Silberbach even spoke of the possibility of ballots and forced strikes in the event of failure in Potsdam.