[Germany] Wage negotiation breakthrough for fast food chain employees

In Germany, the union NGG has announced a significant breakthrough in wage negotiations within the system catering industry, which includes major fast food chains such as McDonald's and Burger King, The Munich Eye reports.

If it moves forward the agreement promises substantial pay raises. However, this is contingent on final approval.

During a mediation session between the NGG union and the Federal Association of System Catering (BdS), both parties reportedly confirmed progress. However, the negotiated tariff agreement is still pending confirmation from the BdS. It had until 6pm on March 13 to respond.

If the agreement is approved, workers employed by the fast food industry’s giants could see wage increases ranging from 9.8 per cent to 18.73 per cent. According to The Munich Eye, the NGG has expressed optimism about the development, believing it to be a positive step towards improving compensation in a sector often criticised for low pay, following several months of negotiations and multiple warning strikes.

Employees in the three lowest wage categories currently earn €13.02 per hour. Under the agreement, hourly rates would increase to between €14.30 and €15.00 by October 1, 2026, if it is finalised. In addition, skilled workers classified in the highest wage group are projected to earn over €3,000 per month for the first time. The initial phase of the wage increases is set to be retroactive to March 1, 2025.

The NGG reportedly stated that the new tariff agreement would impact approximately 120,000 workers across various establishments, including McDonald's, Burger King, Starbucks, Pizza Hut, Autogrill, and Nordsee. The BdS has yet to provide further details regarding the mediation outcomes.

Source: The Munich Eye

In Germany, the union NGG has announced a significant breakthrough in wage negotiations within the system catering industry, which includes major fast food chains such as McDonald's and Burger King, The Munich Eye reports.

If it moves forward the agreement promises substantial pay raises. However, this is contingent on final approval.

During a mediation session between the NGG union and the Federal Association of System Catering (BdS), both parties reportedly confirmed progress. However, the negotiated tariff agreement is still pending confirmation from the BdS. It had until 6pm on March 13 to respond.

If the agreement is approved, workers employed by the fast food industry’s giants could see wage increases ranging from 9.8 per cent to 18.73 per cent. According to The Munich Eye, the NGG has expressed optimism about the development, believing it to be a positive step towards improving compensation in a sector often criticised for low pay, following several months of negotiations and multiple warning strikes.

Employees in the three lowest wage categories currently earn €13.02 per hour. Under the agreement, hourly rates would increase to between €14.30 and €15.00 by October 1, 2026, if it is finalised. In addition, skilled workers classified in the highest wage group are projected to earn over €3,000 per month for the first time. The initial phase of the wage increases is set to be retroactive to March 1, 2025.

The NGG reportedly stated that the new tariff agreement would impact approximately 120,000 workers across various establishments, including McDonald's, Burger King, Starbucks, Pizza Hut, Autogrill, and Nordsee. The BdS has yet to provide further details regarding the mediation outcomes.

Source: The Munich Eye