Amid massive warning strikes, employers and unions have resumed deadlocked collective bargaining for the public sector.

At the start of the third round of negotiations, both sides in Potsdam called for movement. In view of the hardened fronts, it was completely unclear whether a breakthrough would be achieved in the three-day round. Parallel to the talks, Verdi, together with the EVG railway union, is paralyzing public transport in large parts of Germany.

“All, really all members that we called for industrial action today are taking part in this strike,” said Verdi boss Frank Werneke. “It’s just pressure on the cauldron because workers are tired of being fobbed off with warm words every day while working conditions are getting worse and there are many vacancies.”

In the past few days, the largest warning strike participation in decades has been recorded in the Verdi area. This sends “a clear message” that the employer’s previous offer is unacceptable for the employees. According to Werneke, employers still have to take “a clear step” towards employees today.

High energy prices, under high inflation

The employers, however, called on the unions to seriously negotiate the present offer. According to Karin Welge, President of the Association of Municipal Employers’ Associations (VKA), there is no need for a new offer. Federal Interior Minister Nancy Faeser (SPD) said: “Many people, including those in the public sector, are suffering from high energy prices and high inflation these days. That’s why it’s our job to find a good deal together.”

Verdi and the civil servants’ association dbb have been negotiating with the federal and local governments since January about the incomes of around 2.5 million employees. Against the background of high inflation, Verdi and dbb are demanding 10.5 percent more income, but at least 500 euros more per month, with a term of twelve months. Employers offer 5 percent more in two steps with a term of 27 months. Municipalities and the federal government reject a minimum amount, but offer one-off payments of initially 1,500 and later another 1,000 euros.

Verdi boss is skeptical about possible stratification

dbb boss Ulrich Silberbach brought a possible failure of the negotiations into play. In the event that the employers did not significantly improve their offer, Silberbach said: “We would then probably go to arbitration. If that does not lead to a result, then it will be very dark again in Germany. Then we will go into a nationwide , open-ended industrial action.”

In his own words, Werneke is skeptical about a possible stratification. If there is sufficient will to find a solution, the necessary pay increase can be agreed within the regular negotiations, he said. In the event of arbitration, an independent arbitration commission would meet to propose a compromise. To set them in motion, one side would have to declare the negotiations failed and call the arbitrators. The round of negotiations in Potsdam is scheduled for three days.

At the minimum, Welge signaled possible movement. The resolution situation has not yet allowed the VKA to focus on such an instrument. “But the next two days will show very intensively whether we come to a different conclusion,” said Welge.

On the issue of inflation compensation, Werneke argued that even full implementation of the union demands would only be enough to secure people’s purchasing power. Municipal President Welge, on the other hand, pointed out that the municipalities already had comprehensive tasks such as the turnaround in traffic and climate change and the hiring of new employees.