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German Bank Employees Demand Up To 16 Percent Pay Rise As Strikes Loom
https://www.whatjobs.com/news/world-news/german-bank-employees-demand-up-to-16-percent-pay-rise-as-strikes-loom
By Nithya Bose in Business News, posted June 24, 2024
200,000 bank employees in Germany are fighting for pay increases of up to 16 percent to cope with rising living costs, with unions warning of potential strikes.
These pay negotiations come amidst a surge in costs affecting workers while banks benefit from higher interest rates to combat inflation.
Negotiations are underway for over 140,000 employees at major banks like Deutsche Bank and Commerzbank but have hit a deadlock.
Talks for more than 60,000 employees at state-affiliated banks are set to begin today (Friday, June 20).
Unions demand pay increases between 12.5 to 16 percent, pointing to the significant profits banks have made.
However, both labor and management are firmly entrenched in their positions.
Union negotiators rejected a recent 8.5 percent pay increase offer from private bank employers as insufficient.
Jan Duscheck, chief negotiator for the Verdi labor union, which is pushing for a 12.5 percent increase, described the 8.5 percent offer as "way off the mark."
He indicated strikes are likely before talks resume in July.
Some Commerzbank employees have already gone on strike last week demanding higher wages.
Although inflation in Germany decreased from nearly seven percent in 2022 to 2.4 percent in May, it remains higher than many Germans are accustomed to.
"Anyone who achieves results in the billions must also keep an eye on those who make these results possible"
The DBV union sought a 16 percent increase and criticized the 8.5 percent offer, signaling discontent with a "yellow card."
AGV, the association representing employers, described its offer as a "first step" and expressed willingness to make significant pay increases.
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However, it also cited economic weaknesses, lower interest rates, and geopolitical risks as challenges.
Separate talks for public banks, including Landesbanks, savings banks, and the state development bank KfW, begin on Friday in Duesseldorf.
VOEB, representing public banks' management, deemed Verdi's 12.5 percent demand unrealistic.
Verdi official Frederik Werning said: "Anyone who achieves results in the billions must also keep an eye on those who make these results possible."
Deutsche Bank's management reached a deal with unions for thousands of Postbank employees in May.
This resulted in an 11.5 percent pay increase in two steps, ending months of negotiations and strikes.
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