Berlin BVG Wage Dispute Settlement Proposal: A New Chapter for 16,000 Workers?
Mediator proposes settlement terms for the BVG conflict in Berlin
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The intense Berlin BVG wage dispute, causing service disruptions for Berliners, may finally find its resolution with a proposed settlement. After numerous rounds of negotiations and the engagement of external mediators, a deal that could prevent further strikes is on the table. Matthias Platzeck, former Minister-President of Brandenburg, played a pivotal role as a mediator, describing the process as marked by escalations and troughs. The Left party's Bodo Ramelow mediated for Verdi.
The settlement proposal includes a gradual increase in base salary by 430 euros over two years. This surge could amount to a near 20% hike in wages for certain job groups, inclusive of allowances. The BVG and Verdi will discuss the proposal further, striving to reach a final agreement and averting further work stoppages.
Negotiations for a new collective agreement for approximately 16,000 employees began in mid-January between BVG and Verdi. After the sixth round, Verdi deemed the dialogue unsuccessful, leading to the suggestion of external mediators to find a solution.
The BVG and Verdi at Odds
The most significant obstacle in the negotiations was the demand for an additional 750 euros per month. BVG considered this demand unrealistic and infeasible, while Verdi accused the company of undervaluing employee performance. On other aspects like term and allowances, both parties made progress in negotiations.
Before the mediations commenced, BVG's latest offer proposed a staged increase of 375 euros over 24 months. Additionally, a Christmas bonus of 200 euros in two steps, a 225 euros shift and alternate shift allowance, and a 130 euros shift allowance were offered. This would have resulted in an overall wage increase of 13.6% for employees over two years.
To assert their demands, Verdi organized five warning strikes during the negotiations, ultimately causing service disruptions for eight days in the capital.
Following the negotiations' failure, Verdi held a vote among its members on the possibility of indefinite strikes. Last week, members voted in favor of this option.
Enrichment Data:
- The Proposed Settlement: The settlement includes a total monthly increase of €430 over two years, with the first increase of €380 taking effect on June 1, 2025, and an additional €50 added one year later. Additionally, a one-time payment of €1,500 has been agreed for the first half of the year.
- Union and Worker Reactions: While some workers are pleased with the outcome, others remain dissatisfied, calling for stronger strike action to achieve the original pay increase demands.
- Implications of the Settlement: If both parties reach a final agreement, it could bring stability to BVG operations and potentially end the ongoing service disruptions for Berliners.
- The settlement proposal, which involves a gradual increase in base salary by 430 euros over two years, was negotiated by Matthias Platzeck, former Minister-President of Brandenburg, and Bodo Ramelow from The Left party, acting on behalf of Verdi and the BVG respectively.
- Prior to the negotiations with external mediators, the BVG had proposed a staged increase of 375 euros over 24 months, which included additional allowances and Christmas bonuses, amounting to an overall wage increase of 13.6% for employees over two years.
- In light of the proposed settlement, Verdi members, despite mixed feelings among workers, voted in favor of the possibility of indefinite strikes during their recent union vote.
