German private bank employees have secured a 10.5 percent pay increase to help manage rising living costs, union and bank representatives announced.
This agreement, affecting around 140,000 workers, was reached late Wednesday during the third round of negotiations, which followed a series of strikes.
Initially, the Verdi and DBV unions had demanded pay increases of 12.5 percent and 16 percent, respectively.
However, the banks have aimed to control their costs.Â
Jan Duscheck, Verdi’s chief negotiator, said the raise would provide “noticeable relief.”
AGV, the employers’ association, described the deal as “fair.”
Inflation in Germany has dropped significantly from nearly seven percent in 2022 to 2.2 percent in June.
However, it remains higher than many Germans are accustomed to.Â
The pay agreement will be in effect for 28 months and impacts major banks such as Deutsche Bank and Commerzbank.
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Deutsche Bank, Germany’s largest lender, has been working to reduce expenses to meet ambitious targets for the coming year.
A source said the bank had already accounted for the wage agreement in its financial planning.
In May, a separate agreement was reached between unions and Deutsche Bank’s management for thousands of the lender’s Postbank employees, concluding months of negotiations and strikes.
This earlier deal resulted in a 11.5 percent pay increase for employees, implemented in two phases.
Separate wage negotiations continue for the 60,000 staff at state-affiliated banks, with further discussions scheduled for later this year.
