Allen & Overy advises Sparda banks on collective agreement with the Verdi/EVG trade unions

On 13 September, during the fourth round of negotiations, both negotiating parties were able to reach a preliminary result which can now be accepted by the competent bodies by 29 September. Agreement was reached on the following issues:

• Term: 1 April 2021 until 30 September 2023 (term of 30 months)
• 2021: EUR 400 net until 15 November 2021 (part-time employees on a pro-rata basis, trainees: EUR 200)
• 2022: Adjustment as of 1 January 1.25% + 1 day off as load compensation (trainees: EUR 30)
• 2023: Adjustment as of 1 April 1.25% + 1 day off as load compensation (trainees: EUR 30)
• Leave conversion: 6 days (previous table, option as from 1 January 2022).

This agreement is the first collective agreement in the banking sector. With a term of 30 months, the Sparda banks have achieved planning certainty which is of great importance in view of the difficult economic times. The challenges faced by the banks due to regulations, necessary investments and the ECB's negative interest will remain significant also in the years ahead. 

Already in September, negotiations are coming up both for public banks (22 September) and private banks (24 September). 

The advisory team at Allen & Overy comprised partner Thomas Ubber and associate Sven Gunkel (both Frankfurt, both Employment & Benefits).

The Association of Sparda Banks was advised inhouse by Tobias Geißler and Kristina Thielemann.