German public sector workers agree to wage deal with employers

German public sector workers have agreed on a wage deal with employers, Interior Minister Nancy Faeser and the Verdi union said on Saturday, ending a dispute that has disrupted the transport sector in Europe's biggest economy. The agreement for around 2.5m workers in the sector follows arbitration. Under the deal, each worker will receive a total of E3,000 in tax-free payments in instalments through to Feb. 2024 to help offset inflation, said the ministry in a statement. From March 2024, wages will rise by 200 euros per month and in a second step, there will be a 5.5% increase, it said. The deal will run for two years. Verdi, which had wanted 10.5% more money, said it would start a survey of its members with the wage commission making a final decision on May 15. A surge in the cost of living this year has led to some of Germany's most disruptive strikes in decades. Consumer prices soared by 9.6% in Germany in 2022 but price pressures have abated in recent months after a winter energy crunch did not materialise and supply chain problems eased. Last month, strike action from unions Verdi and dbb brought railways and airports to a near-halt in Germany's biggest walkout in more than three decades, according to Verdi.<br/>