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MUNICH – The Munich City Council has approved a comprehensive austerity plan that will see the city eliminate 1,650 municipal positions by 2030. The decision, finalized by the Personnel and Administration Committee on Wednesday, aims to stabilize personnel costs, which currently exceed 2.5 billion euros annually.
According to the approved strategy, the job reductions will be primarily achieved through attrition, meaning positions will not be refilled once they become vacant. The city plans to cut 750 positions in the coming year, followed by 300 positions annually thereafter. This move follows the elimination of 1,150 vacant positions in 2025.
Reductions in Benefits and Allowances
Beyond the job cuts, the city is also targeting employee benefits to further reduce expenditures. Starting in 2028, educators will lose their monthly labor market allowance of 200 euros. Additionally, the travel cost subsidy for all municipal employees will be reduced from 46.55 euros to 25 euros per month.
Personnel Officer Andreas Mickisch (SPD) defended the measures, stating that the city has already saved 125 million euros through previous efforts. He noted that the elimination of the educator allowance is partly due to changing labor market conditions, as the city no longer faces the same difficulties in recruiting staff as it did a decade ago.
Strong Opposition and Criticism
The decision has faced significant backlash. The General Staff Council (GPR) criticized the cuts, arguing that they place an unsustainable burden on remaining employees and increase the risk of errors in public administration. Furthermore, the GPR expressed frustration over a lack of constructive engagement from city leadership.
The trade union Verdi and the Left Party faction in the City Council have also voiced strong opposition. Stefan Jagel, leader of the Left Party faction, described the measures as \”wage cuts through the back door,\” warning that the austerity policy threatens the quality of public services and social cohesion in Munich.
Concerns were also raised regarding the impact on work-life balance, particularly for women. The municipal Equal Opportunities Office warned that restrictive policies regarding parental leave and job-sharing could negatively affect employees’ ability to balance professional and family responsibilities.
Mayor Dominik Krause (Greens) acknowledged the concerns raised by the staff representatives, emphasizing that the city must tackle these challenges collectively. He described the strategy as a \”moderate proposal\” compared to other municipalities, while cautioning that the coming years remain financially difficult.
Source: Süddeutsche Zeitung
