Germany: pensions and pay rises

Ver.di is the first German trade union to consider plans for a pension fund for service workers, taking advantage of recent government proposals for reform of the occupational pension system.

ETUC German affiliate the DGB gave the reforms a guarded welcome: “The draft law contains many good regulatory approaches, but for the supply gaps to be closed, some changes and improvements are necessary,” said the confederation in a statement. The scheme targets low-income earners specifically. An occupational pension plan already exists in the metalworking and engineering industries.

Meanwhile, ver.di and other public sector unions in Germany have secured a 2% pay rise for some 800,000 regional government workers. The two-year deal is backdated to January 2017 and means a minimum increase of €75 a month – just above current inflation – with a further 2.35% in 2018. “We have achieved a clear increase in pay in real terms and overall this is a positive result,” said ver.di president Frank Bsirske.

While social partners in the textile sector have just agreed on a 4.4% wage hike for some 100,000 workers in the former West Germany, together with increased holiday allowances. Negotiations on behalf of textile workers in the eastern Länder will start later in March.

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Pensions