Deutsche Post pay agreement wards off strike

Deutsche Post, the German postal service operator, is reported to have reached an agreement with the German services sector union Ver.di regarding pay increases for the coming two years, thereby averting strike action. The agreement will be valid until the end of April 2006.

Standard wage earners are to receive a 2.3 per cent pay increase in November 2004, followed by a 2.7 per cent rise a year later. Before this, they will receive two additional payments of 65 euros each. The union has expressed satisfaction, while the company comments that the duration of the agreement allows planning security.