german union
© ReutersProtesters demonstrate in front of 'Landungsbruecken' at the harbor during a nationwide strike called by the German trade union Verdi over a wage dispute in Hamburg, Germany, March 27, 2023.
German public workers and their employers concluded a wage agreement after four rounds of talks concluded on Saturday in Potsdam, outside of Berlin, announced Interior Minister Nancy Faeser announced, calling the deal "good and fair."

The deal ends a wage dispute that has brought disruption to Europe's biggest economy.

"The employees perform a good service in the general interest of all of us, and times are very difficult, so we must also pay them appropriately," she said.

The salary dispute has disrupted Europe's largest economy for months in a row.

Municipalities led talks with the trade unions on behalf of the government, Faeser added.

"The municipalities are not doing so well at the moment either, and we are talking about public tax money here," she said.

Around 2.5 million workers will receive a 3,000 euros ($3,330) payment to compensate for inflation, and starting March 2024, wages will increase by at least 340 euros.

German unions have been organizing mass strikes across the country, paralyzing public transport, airports, postal service, and other facilities, including schools and hospitals.

"This compromise would not have been possible without the many warning strikes and protests over the last few months," said Ulrich Silberbach, head of the German civil servants' association DBB.

In November 2022, Germany's inflation stood at around 11.3% running high at its fastest pace since the early 1950s.

Monika Schnitzer, who heads the council of economists that advises the German government, said in October 2022 that the inflation in Germany is likely to remain high until the end of 2024 as the country's companies spill their rising costs onto customers.