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Wage dispute deepens at German public banks as Reuters continues to worry about inflation

© Reuters. File Photo: The skyline with the banking district was taken on October 1, 2021 in Frankfurt, Germany.Reuters / Kaifafenbach / File Photos

Tom Sims and Frank Sievert

Frankfurt (Reuters)-Labor disputes at German public sector banks intensified Wednesday after the third round of negotiations failed to reach an agreement.

The deadlock affecting approximately 60,000 workers at development banks such as Landesbanken and KfW in Germany reflects the deadlocked wage negotiations of private bank employees: Deutsche Bank (DE :) and Commerzbank (DE :).

Germany has more per capita banks than most of its neighbors and other industrialized countries. As a result, competition is fierce, profits are low, and we are working to reduce costs and personnel.

Public bank workers went on a warning strike to highlight the union’s demand for a 4.5% wage increase and the right to work outside the office.

Official Jan Dascheck, who oversees the Verdi trade union negotiations, said he was disappointed with the results of the recent negotiations.

“We didn’t have to offer a specific salary and we didn’t have to seriously negotiate the issue of mobile work,” he told Reuters.

Germany’s annual inflation rate in September was 4.1%. This shows that price pressure is increasing as Europe’s largest economy recovers from the COVID-19 pandemic and its companies are facing supply shortages.

Oliver Pop, a spokesman for the DBV union, said inflation concerns have played a major role in union demand.

“Ordinary bankers aren’t that wealthy,” Pop said.

“Salaries are just enough to get through,” and energy prices are “crazy,” he said.

Bank management negotiators said they would like to secure an agreement at the next meeting scheduled for November.

Last week, union officials canceled planned wage negotiations with private banks after stating that management’s counter-proposals were inadequate. The union wants a 4.5% increase over the 140,000 private bank employees who participated in the talks.

Earlier this year, Deutsche Bank call center employees were paid € 12 ($ 13.95) per hour, went on strike to raise wages, and finally signed a wage contract after a month of controversy. I tied it.

($ 1 = 0.8603 euros)

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Wage dispute deepens at German public banks as Reuters continues to worry about inflation

https://www.investing.com/news/stock-market-news/wage-dispute-deepens-at-german-public-banks-as-inflation-fears-persist-2649095 Wage dispute deepens at German public banks as Reuters continues to worry about inflation

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