German union demands 4.5% pay hike for postal employees

Germany’s Verdi trade union is demanding a pay hike of 4.5% for some 130,000 employes of the former state-owned postal company Deutsche Post AG, the union announced Friday. Verdi said it is aiming for a 12-month contract. Initial talks between the union and employers are scheduled for April 28. “The domestic economy has to gain momentum. If the employees are to spend more money, then they need a significant pay hike,” Verdi vice head Rolf Buettner said. Next week, wage negotiations in Germany’s metalworking sector enter their crucial phase. The IG Metall union has asked for a pay hike of 5%, also arguing that the domestic economy needs to be bolstered by increasing purchasing power via significant pay hikes.