Netto and Otto Join Aldi and Rewe in Salary Increases for Retail Employees Amid Stalled Bargaining Talks

Following the lead of Aldi and Rewe, discount retailer Netto and the Otto Group have decided to raise employee salaries, in line with a recommendation from the retail association HDE. However, Verdi boss Frank Werneke finds the proposed 5.3 percent wage increase insufficient.

Starting from October 1st, these wage increases will take effect for employees in various sectors. Netto’s increase will be applicable to all collectively agreed employees in administration, stores, and logistics centers. Meanwhile, Otto’s increase will benefit both collectively agreed employees and trainees. Both companies stress that these measures are voluntary.

The ongoing collective bargaining round between the German Trade Association (HDE) and the Verdi union has reached a stalemate.

Frank Werneke, the head of Verdi, deems the 5.3 percent wage increase “insufficient and a blow to retail employees.” He further elaborates, “That’s a mere 92 cents per hour for a saleswoman, resulting in a decline in real wages. Given that employees already receive low wages, the recent months’ inflation is further eroding their earnings.”

HDE had previously recommended that its member companies initiate salary increases for employees, even in the absence of a collective agreement