Catherwood LibraryILR School

Avoiding a politically and economically damaging strike, German government employers and public sector union Verdi reached a tentative contract agreement covering 2.9 million public sector workers last night, after meeting almost continuously since Wednesday afternoon. Despite declaring a strike all but inevitable after non-binding arbitration led to a suggested settlement framework unacceptable to the union (see WIT for Jan. 6, 2003), Verdi's leaders were able to win raises 1.4% higher than the three percent minimum raise they had insisted on throughout negotiations, as well as wage-parity between eastern and western Germany. Including an unusually long---by German standards---twenty-seven month contract, a three-step instead of an all at once or even two-step raise, phased in instead of immediate wage parity, longer working hours, and other concessions as the price of the larger raises and wage parity, it is unknown if the agreement will be accepted by Verdi's full negotiating committee today.