German public-sector deal sees pay rise for 2.5 million workers

BLOOMBERG

German public-sector workers struck a wage deal with employers, capping a confrontational series of negotiations that saw repeated strikes in Europe’s largest economy.
Staff will receive staggered one-time payments totalling  $3,300 through February 2024.
After that, salaries will rise by 200 euros on a permanent basis, and then be increased by 5.5%.
The agreement covers about 2.5 million employees in the German public sector and comes after three rounds of talks failed to produce a result.
Wages in the euro area have become a key focus for central bankers who are worried that strong increases will make it harder to return
inflation to their 2% target.
ECB President Christine Lagarde has called on companies and their staff to share the burden of higher energy costs to avoid a “feedback mechanism between higher profit margins, wages and prices.”