Strike at Germany's Postbank averted as unions agree pay deal

Trade unions and employers averted strikes at Germany's Postbank at the last minute with a collective bargaining compromise on Thursday, with the Verdi union saying it is calling off a strike ballot on possible industrial action.

According to consistent reports, the new collective agreement is to run for 28 months and provide higher salaries in two stages to around 9,000 employees of Postbank, which is owned by Deutsche Bank.

Immediately, pay for all employees will rise by a flat €175 ($200), amounting to a 4.5% increase on average, Verdi said.

A further percentage increase of 2.9% will follow in July 2027, according to the deal. Trainees' pay is set to rise by a total of €150, and their job-guarantee agreement has been extended to 2028. Verdi also said the branch network, with at least 300 branches and 13 digital advisory centres, has been secured until March 2028.

Warning strikes and ballot

Citing the multibillion-euro profits of parent company Deutsche Bank, Verdi had demanded 8% more pay for employees over a 12-month term, with a minimum of €300 per month. It wanted trainees to receive €200 more.

After three rounds of negotiations and strikes, Verdi initially declared the talks had failed and launched a strike ballot, which was due to end on Friday, July 3. That will now be suspended following the compromise reached in the fourth round.

Instead, employees are to decide by July 24 whether to accept the wage agreement, Verdi lead negotiator Jan Duscheck explained.