Collective bargaining in the public service

type: News , Topic: The public service , Date: 18 March 2025

Arbitration initiated after the third round of negotiations in collective wage bargaining for the federal and local public service

Source: picture alliance/ Christophe Gateau

In the early morning hours of 18 March 2025, following the third round of negotiations in Potsdam for some 2.6 million federal and local public service employees, the unions and employers agreed to move to arbitration. “We have had three tough rounds of negotiations. We made some major concessions to the labour unions. We went to the limit of what we can responsibly offer from the public budgets. But the unions were not willing to make further compromises. We had to initiate arbitration,” Federal Minister of the Interior and Community Nancy Faeser explained after the third negotiating round.

The negotiations between the labour unions and the public employers had lasted four days. “What we brought to the table were real, tangible improvements and relief for our employees. We proposed wage and salary increases that in some cases were more than what ver.di has agreed to recently in other sectors. We wanted significantly bigger annual bonuses for certain groups of employees, for a true 13th month’s pay. We were also willing to increase the allowances for shift work, which would have benefited our dedicated employees who work nights and weekends. We also offered time off in exchange for money: part of the annual bonus could be traded for days off. That would also make the public service more flexible, more modern and more attractive. And we wanted to end the last remaining differences between federal employees in eastern and western Germany with regard to job security and temporary contracts.”

1. Who are the arbitrators?
   

   In the arbitration process, independent third parties mediate between the collective bargaining partners to help them reach an agreement. The arbitrating committee is made up of two non-partisan chairs and 12 representatives from each side, the labour unions and the employers. At the end of their consultations, the committee makes a recommendation for an agreement. The location of arbitration proceedings is kept secret in order to ensure the confidentiality and discretion of the proceedings.

2. Will there be more warning strikes?
   

   During arbitration, no strikes are allowed until the arbitration proceedings have reached a conclusion. “We expect that arbitration will yield a result in the coming weeks,” Federal Minister Faeser said.