Banking sector reaches wage deal

8th July 2004, Comments 0 comments

8 July 2004 , FRANKFURT - German banks and their employees reached a new wage agreement through May 2006 early Thursday calling for a two-step pay hike. The agreement hammered out by the white collar employees union ver.di for some 430,000 banking workers calls for a 2.0 percent rise starting in September. In September 2005, pay will be boosted by a further 1.6 percent in a contract going up through May 2006. The accord also carries provisions on early retirement, part-time work and traineeships in the ind

8 July 2004

FRANKFURT - German banks and their employees reached a new wage agreement through May 2006 early Thursday calling for a two-step pay hike.

The agreement hammered out by the white collar employees union ver.di for some 430,000 banking workers calls for a 2.0 percent rise starting in September.

In September 2005, pay will be boosted by a further 1.6 percent in a contract going up through May 2006.

The accord also carries provisions on early retirement, part-time work and traineeships in the industry.

"This is a result which can let itself be seen," said ver.di's chief negotiator, Hinrich Feddersen, after the 18-hour wage talks.

But Dieter Rampl, chief executive of HypoVereinsbank and the top negotiator for the banks, was less enthusiastic.

"This is the upper limit of what the sector can currently afford," Rampl commented. But he said "genuine progress" had been made in other areas of the wage accord.

Analysts note that the 2 percent initial-stage pay hike more or less matches Germany's current annual inflation rate. The agreement also comes as German banks have been slashing payrolls to try to curb administrative costs in a bid to regain their profitability.

 

DPA

Subject: German news

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