German Public Sector Labor Talks Enter Mediation as Strikes Pause

Negotiations for 2.5 million workers stall, with unions and employers divided over wage increases and benefits.

The third round of collective bargaining for Germany's public sector ended without an agreement, prompting mediation to begin on March 17, 2025.
Unions Verdi and dbb are demanding an 8% wage increase or at least €350 more per month, alongside additional vacation days, citing inflation and living costs.
Employers offered a 5.5% wage increase, higher Christmas bonuses, and increased shift allowances, but unions rejected this as insufficient.
During the mediation process, strikes are temporarily prohibited under a peace obligation, though unions remain prepared to escalate if no compromise is reached.
The outcome of the mediation could set a precedent for balancing worker demands with fiscal constraints in future labor disputes.