German bank staff win 10.5% pay increase after strikes
Adds second graphic, no change to text
By Tom Sims
FRANKFURT, July 4 (Reuters) -German private bank staff have struck a deal with employers for a 10.5% pay increase to cope with rising living costs, union and bank representatives said on Thursday.
The agreement, affecting some 140,000 workers, was agreed late on Wednesday in a third round of talks that followed a series of strikes.
The Verdi and DBV unions had originally demanded increases of 12.5% and 16%, respectively. But banks have been trying to keep a lid on costs.
Jan Duscheck, chief negotiator for the Verdi labour union, said the increase will provide "noticeable relief". AGV, the association representing employers, called the deal "fair".
Inflation rates in Germany have come down significantly from nearly 7% in 2022 - the highest pace in decades - but the 2.2% rate for June is still higher than many Germans are used to.
The agreement is valid for 28 months and it effects listed banks such as Deutsche Bank DBKGn.DE and Commerzbank CBKG.DE.
Deutsche, Germany's largest lender, has been seeking to cut expenses to reach ambitious targets next year.
The bank had already factored the wage agreement into its financial planning and nothing has changed, said a person familiar with the matter.
In May, unions and Deutsche Bank's management reached a deal for thousands of the lender's Postbank employees, putting an end to months of wrangling and strikes. Employees won a 11.5% increase in two steps.
Separate wage negotiations are ongoing for the 60,000 staff at state-affiliated banks and talks are scheduled to continue later this year.
German inflation soars https://reut.rs/3xdF6r3
Banker pay outperforms https://reut.rs/3xK7gKe
Reporting by Tom Sims, editing by Rachel More, Thomas Seythal and Jason Neely
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
