The leader of Germany’s largest service sector union, Verdi, Frank Werneke, staunchly defended the union’s demand for a 7% wage increase in ongoing negotiations with state governments regarding public sector workers’ pay. In an interview with the “Rheinische Post”, Werneke signaled a potential escalation of industrial action if the states fail to meet the union’s demands, framing the dispute as critical to Germany’s broader economic recovery.
Werneke argued that Germany’s exit from recession hinges on bolstering domestic demand, necessitating real wage growth – that is, wage increases that outpace inflation. He directly challenged the states’ resistance to these demands, asserting that denying public sector workers a meaningful increase would ultimately hinder economic stabilization.
His comments were laced with criticism towards state governments, expressing a marked lack of solidarity given what he characterized as their ongoing attacks on the social safety net. While acknowledging the profitability of private service sector companies, Werneke pointed to projected 2026 tax revenue increases of 5% for the states, suggesting ample room for financial accommodation.
The union leader dismissed concerns that wage increases would exacerbate the financial strain on municipalities, insisting that failing to address the severe staffing shortages within the public sector would be the more problematic outcome. He highlighted the critical personnel gaps, citing the 26,000 unfilled positions in North Rhine-Westphalia’s state service alone.
The prospect of strikes remains firmly on the table. Werneke stated that the scale of potential industrial action will hinge on the outcome of the second round of negotiations scheduled for early next year, adding a clear warning to state governments that Verdi is fully prepared to authorize widespread strikes to secure its members’ demands. The dispute highlights a growing tension between austerity measures and the need to maintain public services and support economic recovery in Germany.
