Germany's Postbank and trade unions 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.
Long-term job security was very important to the trade unions due to the planned branch closures.
Deutsche Bank announced plans to close up to 250 of its 550 Postbank branches by mid-2026 and reduce the number of employees.
According to Verdi, a location guarantee has now been agreed for around 320 Postbank branches, as well as the establishment of 11 new regional advisory centres to create replacement jobs for employees.
Verdi had demanded pay raises of at least 15.5% for workers, or €600 more a month for the lowest-paid staff at Postbank. The union had also called for the protection against dismissal to be extended until the end of 2028.
DBV had demanded a 14.5% pay increase for the employees of Postbank, Postbank Filialvertrieb, PCC Services and BCB.