Germany: tough compromise on the wage agreement for employees of the Federal State and Towns and their businesses

3-step wage increase. Reached after a conciliation procedure, the agreement provides for a first 1.2% wage increase on January 1, 2010, followed by a 0.6% wage increase on January 1, 2011 and 0.5% on August 1, 2011. Employees working for the Federal State and Towns, i.e. around two million people, will also receive a single €240 bonus in January 2011. This bonus will amount to €50 for apprentices. Besides, the parties agreed, as Ver.di requested, to extend gradual early retirement (Altersteilszeit) in businesses undergoing restructuring. The agreement also provides that 2.5% of employees (instead of 5%) may request gradual early retirement. Ver.di’s other victory is that employers promised to recruit most apprentices for 12 months after their training ends, provided however that they got good grades. Valid for 26 months, the agreement will expire on February 29, 2012. Initially, Ver.di demanded a 5% wage increase and an agreement for 12 months only.
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us will amount to €50 for apprentices. Besides, the parties agreed, as Ver.di requested, to extend gradual early retirement (Altersteilszeit) in businesses undergoing restructuring. The agreement also provides that 2.5% of employees (instead of 5%) may request gradual early retirement. Ver.di’s other victory is that employers promised to recruit most apprentices for 12 months after their training ends, provided however that they got good grades. Valid for 26 months, the agreement will expire on

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