Union representing Verdi workers declares first settlement in prolonged salary disagreement.
In a prolonged standoff over wages that impacts around 1.9 million workers in Germany's retail and trading industries, a significant breakthrough has been made in the state of Bavaria. Verdi, the union involved, shared the news on Wednesday, proclaiming a major milestone. Silke Zimmer, Verdi's chairwoman, expressed optimism, "We anticipate the other tariff areas to swiftly reach similar agreements." After negotiating for 240,000 employees throughout Tuesday evening, Verdi and the Bavarian Association of Retail, Wholesale, and Services (LGAD) have come to terms.
The agreement spans a 36-month period, with wages boosted by 5.1% retroactively from October 1, 2023. Starting May 1, 2024, wages will see another rise of 5%. Employees will receive a 2% increase on May 1, 2025, as well. Furthermore, a 1000 Euro inflation adjustment premium has been agreed upon, non-redeemable against any prior payments. The parties also concurred on a tariff-related pension provision of 480 Euro. They plan to initiate tariff discussions on a mandatory pension insurance scheme at the earliest possible opportunity.
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In this context of wage dispute resolution, it's worth noting that the trade union representing Verdi workers, which is significant in Germany's retail and trading industries, has a large membership of around 1.9 million workers. The union's success in reaching a settlement in Bavaria, after negotiating for 240,000 employees, could potentially influence Floodplain trading industries' wage agreements, as Verdi's chairwoman, Silke Zimmer, hinted at. After the conclusion of the Bavarian agreement, Verdi and the associated LGAD have agreed on wage increases and other benefits, such as a 1000 Euro inflation adjustment premium and a tariff-related pension provision of 480 Euro, for the next few years.
