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‘Best deal in years’: 2.3 million public workers get big pay rise after weeks of strikes

If you work in the public sector you will receive an average of 7.5 percent more pay in the future after the public service union Ver.di struck a new wage deal with the government.

Published: 18 April 2018 10:26 CEST
‘Best deal in years’: 2.3 million public workers get big pay rise after weeks of strikes
Frank Bsirske and Horst Seehofer. Photo: DPA

Rolling public services strikes over recent weeks have hit public transport, hospitals, childcare facilities and administrative offices up and down the country, as over 220,000 of Germany’s 2.3 million public employees went on strike for better pay.

Early on Wednesday morning, Ver.di was able to show that the industrial action had paid off as it announced an agreement with the government for a new wage deal to last until March 2020.

The deal includes three pay rises over a 30-month period and will be retroactive from March 1st 2018.

The first stage of the pay rise will be a 3.19 percent wage increase lasting until April 2019, followed by a 3.09 percent increase until March 2020, when a further 1.06 percent will be added onto wages.

Additionally, state employees such as bin men who are on lower wages will receive a one-off payment of €250.

The deal will cost local governments €7.5 billion in extra salary payments, while the federal government will have to find room in its budget for an additional €2.2 billion.

This graph by Statista shows wage growth in the public sector compared to the consumer price index.

'Very satisfied'

“This is the best result we have had in years,” Ver.di boss Frank Bsirske said of the result of the negotiations.

Interior Minister Horst Seehofer, who led the negotiations for the government, said he was “very satisfied” that public workers would receive a tangible pay boost while pay grades had also been reformed.

Thomas Böhle, who led the negotiations for local government, said that higher pay had been agreed upon for the top pay grades – meaning state jobs would become more attractive for specialists such as IT experts.

Local governments had been reluctant to sanction a pay increase for lower wage employees, saying that they did not face difficulties filling these positions. They were much keener to reform the higher pay grades, where they compete against the private sector for highly qualified staff.

SEE MORE: 10 golden rules to know if you lose your job in Germany

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WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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