(New: more details)
POTSDAM (dpa-AFX) – State employees receive 5.8 percent more income in three stages. According to their reactions, this collective bargaining compromise for the public sector represents a financial challenge and a feat of strength for the federal states. But there is also praise for the unions and state employers who achieved the breakthrough in Potsdam after weeks of warning strikes and tough negotiations.
The negotiating leaders appeared relieved – they only achieved a breakthrough on the fourth day of the final round after an extension. Two nights in a row, both sides fought until four o’clock, it was said.
There will be an increase in three steps for around 925,000 employees in the states: on April 1, 2026 by 2.8 percent, but at least by 100 euros; as of March 1, 2027 by a further 2.0 percent; on January 1, 2028 by 1.0 percent. The unions are insisting on a simultaneous transfer to the more than 1.3 million civil servants and pensioners. What does the collective agreement mean?
For the citizens
Delayed treatment at university hospitals due to strikes, canceled daycare or traffic jams due to closed bridges and tunnels – all of this is off the table for now. For the period until January 31, 2028, the public service will be at rest in 15 of 16 federal states. There are separate negotiations for Hesse because the state left the Collective Bargaining Association of German States (TdL) more than 20 years ago.
For the employees
Verdi boss Frank Werneke said on behalf of the union: “We haven’t achieved all the goals we set ourselves in this collective bargaining round, but we have achieved many.” What was crucial for Verdi and the dbb civil servants’ association was that the increase in wages was not lower than in the collective agreement for the public service at federal and local authorities from 2025. At first glance, it was a perfect landing: there was 5.8 percent more back then, and the term of 27 months is also the same. But there are differences in the details.
The increase amounts to at least 100 euros per month, and 150 euros for junior employees. The working conditions in the East should be brought into line with those in the West in terms of protection against dismissal and working hours. The latter affects the three East German university hospitals in Rostock, Greifswald and Jena. The allowance for shift work increases to 100 euros per month. The rotating shift allowance increases to 200 euros per month, and in hospitals to 250 euros.
There is still a dispute about the transfer to civil servants and pension recipients: dbb boss Volker Geyer criticized the fact that Bavaria had announced a six-month delay in the takeover. “This is met with massive resistance from us,” said the trade unionist.
For the countries
Bavaria’s Finance Minister Albert Füracker (CSU) said: “For the Free State of Bavaria, which has a high personnel expenditure ratio, the implementation of the collective bargaining agreement will be an enormous effort.” His counterpart in Baden-Württemberg, Danyal Bayaz (Greens), already predicted that the deal would restrict the country’s financial flexibility in the coming years. The “noticeable improvements” were also welcomed in the states, such as in Rhineland-Palatinate by Prime Minister Alexander Schweitzer and Finance Minister Doris Ahnen (both SPD).
In the East, the East-West alignment steps were praised. Mecklenburg-Western Pomerania’s Prime Minister Manuela Schwesig (SPD) said: “The people in East Germany do just as good a job as those in the West.” For Thuringia’s Finance Minister Katja Wolf (BSW), the harmonization is particularly important 36 years after reunification.
The agreement will cost the states a total of 12.34 billion euros, as their negotiator Andreas Dressel (SPD) said. For the Hamburg Finance Senator, as for several of his colleagues, the compromise is still “justifiable”.
For the unions
Verdi and the dbb civil service association had demanded seven percent more income – but at least 300 euros per month. There should be 200 euros more per month for young talent. They wanted a term of just twelve months. The fact that it has become much longer is a bitter pill for the unions.
Werneke emphasized that the successes were that there was a real increase in real wages as well as a takeover agreement for trainees – so they can count on a job after graduation. Protection against dismissal in the East has been improved and working hours have been reduced.
He also recorded the higher shift bonuses on the credit side. The unions were unsuccessful in their demand for their own collective bargaining protection for the 300,000 student employees – but at least there is an increase in their minimum hourly wages.
Werneke also hinted at what battle the unions want to fight next: In order to adequately finance the community, a discussion about higher wealth and inheritance taxes is needed./vsr/bw/DP/zb