Tackling Pay Inequalities for Civil Servants: Mecklenburg-Vorpommern's Controversial Move
Mecklenburg-Vorpommern, the northeastern German state, has announced plans to enhance the pay structure for civil servants, primarily focusing on new entrants and those with children. As reported by Finance Minister Heiko Geue (SPD), this update includes advancing civil servants in the lower pay grade A4 to grade A5 and raising the starting salary, as well as increasing family allowances by 50 euros per child and providing a 300-euro special payment for each child during Christmas. These changes are anticipated to benefit around 17,500 civil servants within the state.
Addressing Citizens' Allowance Adjustments
These moves stem from the state's desire to counteract the forthcoming rise in citizens' allowances. Despite advancing the federal wage agreement for the civil service sector administrative date from December 9th to future implementation, Mecklenburg-Vorpommern could not maintain the necessary pay gap without further actions(1).
Trade Union Concerns
Controversy has ensued as a result of these decisions with trade unions spearheading the criticism. Christian Schumacher, the state chairman of the police union (GdP), voiced his concerns, stating that Heiko Geue's credibility had been irreparably damaged. According to Schumacher, essential components of the draft law had been omitted, and the state remained at the base of the country's pay rankings. Neither trust, appreciation nor sustainability would be gained from this approach, he concluded.
The DGB also chimed in, expressing dissatisfaction over the nonadherence to agreements in one major area. For instance, the state government chose not to boost the overall pay scale by only one percent, leaving older civil servants without dependent children feeling largely overlooked. In Dr. Laura Pooth's words, the aim of magnifying the allure of public service in Mecklenburg-Vorpommern would never be accomplished(2).
National Collective Bargaining Agreement
Following tough negotiations between trade unions and the collective bargaining association of the German federal states, a nationwide agreement was reached regarding pay increases for public sector employees. Starting from November 2024, this would result in a basic increase of 200 euros and a comprehensive wage rise of 5.5% starting in February 2025, with an inflation compensation premium totaling 3,000 euros(3). The agreement would also be applied simultaneously to civil servants in Mecklenburg-Vorpommern.
Civic Misfortune
Concurrently, the state government would soon enhance the citizens' allowance paid to unemployed people and those in need by 12% at the beginning of 2024. However, opinions are divided on the extent to which this compensation compensates for the increase in living expenses.
Enrichment Data:
The trade unions, in particular Verdi, have fueled criticism towards the increased pay for civil servants in Mecklenburg-Vorpommern, as their demands have not been met amidst the negotiations. Below are the key issues of contention:
- Demanded Salary Increase: Verdi is pushing for an 8% salary increase, equivalent to a minimum of 350 euros per month for employees. Although the current negotiations have not yielded any concrete offers from employers, the union remains dissatisfied.
- Working Conditions and Workload: Verdi is also demanding improved working conditions and a reduced workload for employees. This includes the introduction of three extra days off and flexible working hours, but the existing negotiations have not addressed these concerns sufficiently.
- Inflation and Living Costs: The union argues that the requirements for public sector workers are attainable given the bulk of work and insufficient wages in the face of inflation and rising living costs. However, employers have yet to provide the required concessions to address these issues.
- Strike Action: In response to the indecisive collective bargaining on February 18, Verdi has decided to hold a warning strike in six federal states of Germany, including Mecklenburg-Vorpommern. This strike will be carried out in 69 companies, affecting 53,000 employees, such as BVG in Berlin and Mecklenburg–Vorpommern(4).
In conclusion, the trade unions' criticism stems from the lack of consideration of their demands during negotiations, including higher salaries, improved working conditions, and reduced workloads. The strike action, consequently, is in an attempt to increase pressure on employers to address these concerns.
