Germany's Postbank and trade union leaders have reached a wage deal after almost three months of talks and repeated strikes, the company and unions announced on Thursday.
In the fifth round of negotiations on Wednesday, unions and employers agreed on salary increases in two stages as well as an extension of protection against dismissal until the end of 2027.
Postbank, a subsidiary of German banking giant Deutsche Bank, has been negotiating for months with the German Bank Employees' Association (DBV) and the trade union verdi, who together represent about 12,000 employees.
Customers can breathe a sigh of relief: both trade unions held ballots on indefinite strikes at Postbank. Strikes had repeatedly caused restrictions in service in the wage talks that have been ongoing since February 6.
According to the unions, the employees in the Deutsche Bank Group will receive 7.0% more pay, but at least €270 ($289), from June 1, 2024 under a Postbank collective agreement.
From July 1, 2025, collectively agreed salaries will increase by a further 4.5%. Employees can decide each year whether to take an additional four weeks' holiday per year in return for a corresponding reduction in pay.
The collective agreement runs until March 31, 2026.
A Deutsche Bank spokesman said: "This agreement has already been taken into account in our financial planning and will not change our cost targets for this year and next."
Deutsche Bank made concessions to the trade unions on one key demand: The protection against dismissal, which was originally limited until the end of January 2024, will now be extended until December 31, 2027. This means that the bank has ruled out compulsory redundancies for employees in its Private Clients Bank in Germany until then.