Agreement Reached: BVG Will Increase Workers' Salaries
April 8, 2023
Berlin transport authority BVG and the Verdi union reached an agreement over the weekend, averting an indefinite strike that had loomed for several days. The deal means BVG workers will receive a total monthly salary increase of €430, starting June 1, 2023.
The agreement comes after a series of rounds of negotiations and mediation, with the two parties failing to reach an accord. The pay rise will consist of an initial €380 from June 2023, followed by an additional €50 from June 2024. Some employees will also receive a one-time payment of €1,500 for the first half of the year.
The BVG had been pushing for a 35-hour, four-day working week, a proposal that was agreed upon during the negotiations. However, employees will now be able to voluntarily increase their weekly working hours from 37.5 to 39 hours, with corresponding pay adjustments.
The conflict, which had persisted since mid-January and resulted in five separate strikes lasting one to two days, ends with a compromise. The Verdi union had initially demanded a monthly increase of €750, but agreed to accept the recently negotiated deal, which lasts for two years.
The frequent strikes and ensuing negotiations have sparked dissatisfaction among workers due to concerns that the union, Verdi, has not adequately represented their interests. As a result, the Transport Workers Action Committee was formed to build resistance from within and advocate for more substantial wage increases and improved working conditions.
With the contract term lasting two years, there will be ample opportunity for continuous wage scale adjustments to account for inflation. However, many workers argue that these increases are insufficient, setting the stage for potential future labor disputes as the core issues of wage stagnation and working conditions remain unaddressed.
The agreement in the public-transit industry could potentially impact the transportation sector, as BVG workers will see an increase in finance due to a €430 monthly salary boost, starting June 2023. The ongoing negotiations between BVG and Verdi also underscore the importance of unions in business, as they strive to maintain fair working conditions and wages.
