Germany: public banks pen collective agreement allowing more remote work  

Against the backdrop of the pandemic and the war in Ukraine, the social partners in Germany’s public banking sector managed to tie-up negotiations and sign a new collective agreement on Thursday 31 March, bringing an end to talks that began some nine months ago. The agreement will apply for a period of 35 months, until 31 May 2024, making it particularly lengthy. It applies to some 60,000 employees of Germany’s public banks, who will see their salaries increase in two instalments: a hike of 3% on 1 July 2022, followed by a 2% rise in 1 July 2023. In addition to a one-off Covid bonus of €750, which was paid in March, employees in the sector will receive a €300 bonus in April. Furthermore, their weekly working time will be reduced by one hour to 38 hours from January 2024. Finally, employees will be able to work up to 40% of their contracted hours remotely. Jan Duscheck, negotiator for the services sector trade union Verdi, says: “This result was achieved after very tough and lengthy negotiations.” He underlined the significant impact of the various strikes led by employees. The Association of German Public Banks (VÖB), which was negotiating alone with Verdi for the first time (until then it had negotiated alongside the Association of German Banks, which represents private players), spoke of the agreement in positive terms, saying it should “significantly mitigate the effects of inflation” and demonstrates the social partners’ sense of responsibility against a backdrop of uncertainty.