Berlin Transport Workers Secure Wage Boost Thanks to Verdi's Persistence in Dispute with BVG
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Labor Dispute Resolved: Verdi and BVG Reach Settlement Agreement - Collective Bargaining between Verdi and BVG concludes, as both parties reach an accord
In a major victory, workers of the Berlin Transport Company (BVG) are set to receive a substantial pay rise, as per the agreement reached between Verdi and BVG. The new deal, which runs until the end of 2026, includes a basic wage hike of 380 euros from June, followed by an extra 50 euros from January 2026. The deal also includes a one-time payment of 1500 euros.
The driver allowance is set to skyrocket from the current 100 euros to 225 euros from June, reaching 255 euros from January 2026. Shift allowances will rise to 130 euros, and rotating shift allowances to 225 euros. Employees will also enjoy an additional 100 euros in Christmas bonus for both 2025 and 2026.
Verdi negotiator Jeremy Arndt hailed the "overwhelming approval" by employees as a nod to the nuanced debate among them. Arndt said, "This paves the way for the long-awaited wage increases." According to Sven Globig, Verdi's collective bargaining committee member, "This agreement is just a stepping stone in upgrading our work at the BVG."
The wage dispute at BVG saw Verdi advocating for better remuneration for approximately 16,000 employees. This involved a series of negotiations and strike actions before accepting an arbitration award leading to the recent settlement. Both sides welcomed the mediator's decision during the dispute.
- Verdi- BVG- Wage Dispute- Arbitration
packed with tension, the BVG wage dispute required continuous negotiation and several strike actions led by Verdi to secure a favorable agreement for the company's approximately 16,000 employees. The dispute reached a resolution when Verdi accepted an arbitration award, leading to a compromise deal that offers a significant pay increase for workers. Said to be subject to approval by Verdi membership in a recent poll, the agreement includes a basic wage hike of 380 euros per month, starting from June 1, 2025, with an additional 50 euros due in January 2026. A one-time payment of 1,500 euros is also included for the period from January to May 2025. Allowances and Christmas bonuses will also see an increase. Critics argue that Verdi could have taken a stronger stance against arbitration and pushed for more comprehensive wage increases.
- The BVG wage dispute, driven by Verdi's efforts, witnessed continuous negotiations and multiple strike actions, aiming to secure a substantial pay rise for around 16,000 employees.
- The resolution came when Verdi accepted an arbitration award, leading to a compromise deal that offers a significant basic wage hike of 380 euros per month from June 2025, with an additional 50 euros due in January 2026.
- The agreement also includes a one-time payment of 1,500 euros for the period from January to May 2025, and allowances and Christmas bonuses will see an increase.
- Critics argue that Verdi could have taken a stronger stance against arbitration, pushing for more comprehensive wage increases.
- This wage dispute resolution is not just a victory for the BVG employees, but it also sets a precedent for the urgent need for upgrading employment policies in the transportation industry, finance sector, and other businesses, aiming for equitable wages by 2025.
