An agreement has been reached in the wage dispute in the German private banking sector.

According to the agreement, salaries are to increase by a total of 10.5 percent in three stages from August 1, as announced by the services union Verdi on Thursday. Salaries for junior staff are to increase by a total of 250 euros. The collective agreement has a term of 28 months. Verdi negotiator Jan Duscheck explained that the strong commitment during the warning strikes had brought about the decisive movement in the third round of negotiations with the employers' association late on Wednesday evening. "The salary increases of over ten percent will provide noticeable relief for salaries."

Thomas Lange, Chairman of the Employers' Association of the Private Banking Industry, said: "The agreement is a fair compromise." He praised the constructive atmosphere during the negotiations. "The social partnership in the private banking sector has proven to be resilient and reliable."

The parties also agreed to continue the collective bargaining reform process that began last year and to start talks on a new pay structure and a modern and life-phase-oriented organization of working hours. The Verdi bargaining commission recommends that the collective agreement now reached be accepted. Verdi members now have until the end of July to vote on the agreement.

According to Verdi, the collective bargaining talks for the more than 60,000 employees of public banks, such as development institutions and state banks, will continue on September 12. Here, the employers have offered a 9.5 percent salary increase over 43 months. Verdi is demanding a salary increase of 12.5 percent for one year, but at least 500 euros more per month.

(Report by Christian Götz, edited by Sabine Wollrab. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)