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Wage talks in the retail sector: conclusion more likely

Wage negotiations in the retail sector have been underway again since Thursday morning. In Hamburg, the union and the trade association are struggling to reach a compromise for the collective bargaining district there. An agreement could serve as a blueprint for other areas.

Verdi members gather for a rally on the ongoing wage negotiations. Photo.aussiedlerbote.de
Verdi members gather for a rally on the ongoing wage negotiations. Photo.aussiedlerbote.de

Negotiations - Wage talks in the retail sector: conclusion more likely

An agreement is becoming more likely in the regional wage negotiations in the Hamburg retail sector. On Thursday afternoon, both sides continued to sit together to find a compromise in the wage dispute that has been smouldering for months, according to the Verdi trade union. Talks had begun in the morning after a week-long break. The fact that the negotiations were still going on hours later was seen as a positive sign.

An agreement would only affect the collective bargaining area of Hamburg. However, the compromise could serve as a template for further agreements in the 14 collective bargaining districts across Germany, which have been fighting for higher pay in the retail sector for more than eight months. The German Retail Association (HDE) sees Thursday's round as the "last chance for an agreement before the end of the year".

The Northern Retail Association has entered the talks on the basis of its previous offer. The employers have so far offered 10.24 percent more pay for a term of 24 months as well as a tax and duty-free inflation compensation bonus totaling 750 euros. "This offer is only guaranteed until December 31, 2023," read an ultimatum from the employers. Among other things, Verdi is demanding at least 2.50 euros more per hour in all regions in the retail sector for a contract term of one year.

No solution has yet been found in a total of around 60 collective bargaining rounds in the districts. The German Retail Association concluded the regional rounds of talks in November and called for a top-level meeting with the Verdi national executive board. However, the meeting did not produce any concrete results. The bargaining parties merely agreed that negotiations should continue at regional level. This is the first time this has happened since the summit meeting in Hamburg.

An agreement in the Hanseatic city is only possible with a further improved offer, Corinna Groß, head of the federal retail sector group at the Verdi federal executive board, had previously emphasized. "We do not accept collective bargaining dictates. We are therefore now assuming that the employers will move and hope that we can reach an agreement for the employees in the Hanseatic city." Shortly before Christmas, the union increased the pressure on the employers once again with further warning strikes.

HDE collective bargaining poster from 15.12.

Read also:

  1. The German Trade Association (HDE) is urging both parties in the Hamburg retail sector negotiation to reach a compromise before the end of the year, as they see Thursday's round as the "last chance for an agreement."
  2. The United Services Union (Verdi) is demanding at least 2.50 euros more per hour in all regions in the retail sector for a contract term of one year, and they believe further improvements from the employers are necessary to reach an agreement in Hamburg.
  3. The German Retail Association (HDE) and Verdi have been engaged in around 60 collective bargaining rounds in the 14 collective bargaining districts across Germany, but no solution has been found yet, leading to warning strikes and increased pressure from the union.
  4. Strikes in the retail sector have been ongoing for more than eight months, as trade unions like Verdi fight for higher pay, while employers offer increased wages, bonus payments, and other incentives to try to reach an agreement.
  5. The Northern Retail Association has entered the talks on the basis of its previous offer, which includes a 10.24 percent pay increase over 24 months, as well as a tax and duty-free inflation compensation bonus totaling 750 euros, but this offer has an expiration date of December 31, 2023.
  6. The German government has been watching the retail sector negotiations closely, as strikes and tariff discussions can have significant impacts on the broader economy and collective bargaining agreements in other industries throughout Germany.

Source: www.stern.de

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