Deutsche Bank to boost wages by 5.2%

Bloomberg

Deutsche Bank AG agreed to boost wages for 8,000 staff by 5.2% in two steps in a nod to accelerating inflation in
Germany.
The deal with unions representing employees at its Postbank retail unit was signed, the lender said in a statement. The bank will first raise wages for the covered staff by 3.1% in June and then by a further 2.1% in February.
Wage negotiations at Germany’s largest lender have been particularly contentious this year after the consumer prices skyrocketed.
Keeping pay rises in check is an important part of Chief Executive Officer Christian Sewing’s plans to boost the profitability this year.
Accelerating inflation has created a challenge, the bank has said. Consumer prices will rise by more than 7% in the coming months, Germany’s banking lobby predicted, saying that would be the fastest rate in four decades.
“The wage negotiations were marked by great uncertainty stemming from the ongoing burden from the zero interest environment, rising inflation and the dramatic geopolitical crisis in Europe,” Deutsche Bank human resources head Michael Ilgner said in the release.
The bank is still locked in wage negotiations with unions for the other part of its German retail bank.