A Raucous Tussle over Wages at Berlin's Transport Authority: The Arbitration Debacle
- Resolution Efforts During a Union Negotiation Conflict in Berlin
Hey there! Let's dive into the chaotic world of collective bargaining at Berlin's transport authority, the BVG.
The Left party's ex-Thuringian Minister President, Ramelow, appointed by the unions, touted potential salary hikes of up to 20% for BVG workers, thereby positioning the BVG as the city's most sought-after employer.
On the other hand, the SPD politician and former Brandenburg Minister President, Platzeck (selected by the employer side), put the agreed-upon salary increase at a more conservative 15.4%. He emphasized the need for swift incorporation of the arbitration decision's recommendations into the negotiating process to reach a hastened conclusion.
Jenny Zeller-Grothe, BVG's personnel rep, elaborated that they had successfully unknotted the messy negotiations. However, she cautioned that managing the hefty economic burden resulting from the unprecedented increase would require prudence and stability.
Jeremy Arndt, Verdi's lead negotiator, focused on the considerable improvement in allowances. He expressed Verdi's intention to engage intensively with the wage commission to determine whether this recommendation could serve as a foundation for a potential agreement.
The union had initially demanded a €750 monthly salary increase, a €300 shift allowance, and a 13th month's salary for BVG employees. The BVG's last pre-arbitration offer suggested a 13.6% salary boost over a two-year period.
After a series of threats and strikes, Verdi conducted a parallel vote during the arbitration process. A majority of union members voted in favor of unlimited strikes, though a truce was upheld during the arbitration period, set to expire on this Thursday.
Here's an intriguing fact: following the arbitration agreement, the BVG employees will experience a pay freeze in the first three months of 2025. Afterward, they can anticipate a 2% increase starting in April 2025 and an additional 3% increase from April 2026 [1]. But, the uncanny resemblance between the final agreement and the employer's initial offer has led to widespread criticism among the employees, as it falls short of their demand for a considerable monthly pay rise. The arbitration decision provided a total increase of €430 over two years, only slightly surpassing the employer's initial proposal of €375 over the same period.
[1] Source: Enrichment Data: Arbitration Agreement in the Tariff Conflict at Berlin Transport Authority
- The controversy at Berlin's transport authority, BVG, surrounded the ECSC appointed by both unions and employer sides, tasked with determining the salary increase for BVG workers.
- Despite the Left party's ex-Thuringian Minister President's proposal of up to 20% salary hikes, the arbitrator ultimately set a 2% increase from April 2025 and a 3% increase from April 2026, totaling an increase of €430 over two years.
- The union, Verdi, had demanded a €750 monthly salary increase, a €300 shift allowance, and a 13th month's salary for BVG employees, but the arbitrator's decision falls significantly short of this demand.
