The German Trade Association (HDE) is calling for a top-level discussion with the service union Ver.di at the federal level as quickly as possible in order to “break through the union’s refusal”. The association came to this conclusion after collective bargaining for the retail sector with the union’s state commissions, which had been ongoing for six months, had not borne fruit. Until then, the trade associations have decided not to be available for further negotiation dates.
“After around 60 negotiation dates in the last six months, it is clear that we have to find a new level with our social partner. As employers, we had already made an offer at the start of negotiations, which we then improved several times. This offer provides for an increase in tariff fees of at least ten percent in two stages over a 24-month term as well as an additional tax- and duty-free inflation compensation bonus totaling 750 euros. With this further improved offer from employers, the pain threshold in the industry has now been exhausted to the maximum,” commented HDE collective bargaining manager Steven Haarke in a statement on Monday.
The trade associations had previously recommended that their collective bargaining members increase collective wages by 5.3 percent through a “voluntary advance increase”. “Since the Ver.di union has not yet seriously negotiated with us in a single collective bargaining area and has not put forward a single solution proposal of its own, we now have to draw conclusions,” continued Haarke.
A solution to the collective bargaining dispute is required
The HDE expects the required top-level discussion with the Ver.di Federal Trade Department to lead to an agreement on a new, effective negotiation format. “If the collective bargaining dispute cannot be resolved quickly in this new format, the employers will no longer maintain the last offer if negotiations continue in 2024,” the statement continues.
Ver.di and employers in the retail sector have been fighting for a new collective bargaining agreement at state level nationwide for months. While Ver.di is calling for an increase in hourly rates by a uniform amount of 2.50 euros for a period of 12 months, employers have made different offers depending on the federal state.
Ver.di boss Frank Werneke rejected the proposed wage increase of 5.3 percent in September and described it as a “slap in the face for retail employees”. “That’s 92 cents an hour for a saleswoman, and that means a loss of real wages. The employees already receive very low wages, and the inflation of the last few months is eating up wages even further,” he argued.
The HDE is the leading organization of German retail and brings together around 280,000 retail companies with three million employees at 400,000 locations, which generate annual sales of around 630 billion euros.