Breathing a Sigh of Relief: Berlin Commuters and Wage Dispute Near Settlement?
Proposed New Structure for Fostering Market Growth within the Commission
The ongoing dispute between BVG and Verdi, affecting Berlin's commuters, has taken its toll. However, the horizon seems bright as both parties are now negotiating over a proposed settlement from external mediators. The proposed settlement could potentially offer a significant pay rise to BVG employees.
The wage dispute, on an intense note, had both ups and downs in the negotiating days, as cited by former Minister President of Brandenburg, Matthias Platzeck, who served as a mediator for BVG. According to the current proposal, the basic salary is expected to increase by 430 euros over a period of two years. Some professions may even see an almost 20 percent salary increase, including allowances.
The latest round of negotiations could potentially lead to a final agreement, halting the series of strikes at BVG.
Timeline of Negotiations:Initiating negotiations took place in mid-January between BVG and Verdi for around 16,000 employees. Verdi reportedly declared the talks stalled after the sixth round. In response, BVG invited external mediators to help find a solution.
Stalemate on Demands:The crucial sticking point in negotiations was Verdi's demand for an additional 750 euros a month, which the BVG deemed unrealistic and unaffordable. In contrast, Verdi accused the company of not acknowledging the employees' performance. Despite this impasse, both parties had made some progress on terms such as the length of the agreement and allowances[2].
Pressure Tactics and Potential Strikes:To apply pressure on their demands, Verdi called for five warning strikes during the negotiations. These actions led to significant disruptions in bus, tram, and U-Bahn services within the federal capital for a total of eight days. Following the failure of negotiations, Verdi also organized a vote among members on the possibility of an indefinite strike[1]. Last week marked a pivotal moment when they paved the way for ongoing strikes[1][3].
Key Provisions of the Proposed Settlement:The proposed agreement includes the following provisions:
- Monthly Wage Increase: A total monthly increase of €430 over two years. The first raise of €380 is set for June 1, 2025, followed by an additional €50 in the second year.
- One-Time Payment: A one-time payment of €1,500 will be paid during the first half of the year.
- Working Hours: Drivers will have the discretion to increase their working hours from the current 37.5 hours per week to 39 hours, with corresponding wage adjustments.
- Contract Duration: The proposed agreement will span a period of two years[2].
Although the proposed settlement is an improvement, not all workers are satisfied, as they believe the agreement falls short of the original €750 monthly increase demand. The Transport Workers Action Committee has advocated for an all-out strike to push for the original demands[1][3].
Sources:[1] https://www.ntv.de/[2] ntv.de, rog/dpa[3] Transport Workers Action Committee, News Release, March 20, 2025.
- The proposed settlement in the wage dispute between BVG and Verdi, as negotiated by external mediators, includes a significant pay rise for BVG employees, with an expected basic salary increase of 430 euros over a period of two years.
- Despite the potential positive outcome of the latest round of negotiations, some workers are not satisfied with the proposed settlement, as it falls short of Verdi's original demand for an additional 750 euros a month.
- The ongoing wage dispute between BVG and Verdi has been marked by a series of strikes and work disruptions within the Berlin public transportation system, with Verdi calling for warning strikes and even organizing a vote for an indefinite strike, which could potentially lead to further disruptions if not resolved in the ongoing negotiations.
