Shorter Weeks, Extra Holiday: German Bus and Tram Workers Win Landmark Deal to Ease Staffing Crisis
Published on 07/03/2026 at 19:57 | Redaktion boerse-global.de
After months of deadlock, a binding arbitration ruling on 3 July 2026 has ended the wage dispute in Lower Saxony’s public transport sector. The agreement, struck between the Verdi union and the Kommunale Arbeitgeberverband (KAV), covers roughly 4,550 employees at ten municipal operators including Hannover’s Üstra. Stoppages that had paralysed bus and tram services in Hannover, Braunschweig, Wolfsburg, Göttingen and Osnabrück are now off the table.
The core of the package is a push to make notoriously demanding driving and shift jobs more attractive. From 2028, the standard workweek shrinks from 39 to 38.5 hours. Workers who want extra income can voluntarily increase their hours to as much as 42 per week. Financial sweeteners include a hike in annual holiday pay to 600 euros from 2026 — a 177-euro jump — and a rise in the Sunday supplement from 25 % to 30 %, effective 2027. Additionally, staff gain one more day of leave next year, bringing the total to 33 days.
The contract runs through 31 December 2029, providing long-term planning security. Verdi still needs to sign off on the deal: a membership vote is being conducted and must conclude by the end of July. The union had pressed hardest for reduced hours and better shift conditions, arguing that chronic overwork was driving people out of the profession.
Operators that will apply the new terms include Üstra in Hannover, BSVG in Braunschweig, WVG in Wolfsburg, GÖVB in Göttingen, and SWO Mobil in Osnabrück. Also part of the agreement are Delbus, MOIN, Stadtbus Goslar, SVHI, and the Stadtwerke Wilhelmshaven.
Peace on public transport does not extend to other sectors. On the same day the arbitration was announced, Verdi called nationwide warning strikes in retail, hitting stores in Hannover, Braunschweig and Oldenburg. The union is demanding a 7 % pay hike; employers have offered 2.4 % from November 2026. The banking front, however, has cooled. At Postbank, a compromise reached on 2 July covers 9,000 employees over 28 months, with salary increases and a commitment to keep the branch network running until spring 2028. Verdi immediately called off a ballot that had already been launched.
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