BERLIN, (Reuters) – Some employees Deutsche Bank (DE) Postbank’s strike is planned for Monday, in order to put pressure on the management to pay higher wages to keep up with rising inflation. A union official stated on Sunday.

Following days of negotiations on separate wages for the wider banking sector in Germany, strikes were held at Cologne’s branches as well as the branch in Berlin.

For months, unions and management at Germany’s private and public sector banks have held multiple rounds of wage talks https://www.reuters.com/world/europe/wage-dispute-deepens-german-public-banks-inflation-fears-persist-2021-10-20 that would affect 200,000 workers. So far, the outcome has been deadlock with brief labour stops.

Germany’s private bank wage negotiations have included Postbank employees. Unions want a 4.5% raise for the 140,000 Postbank staff involved in these talks.

The management rejected these demands and instead made a 500-euro one-time payment.

The pace of inflation in Europe’s biggest economy is increasing. In December, the national consumer price index (CPI) rose 5.3% year-on-year https://www.reuters.com/markets/europe/german-inflation-eases-december-first-time-six-months-2022-01-06, the highest since June 1992 and an acceleration in price pressures after 5.2% in November.

While unions use inflation to justify higher wages, German banks are facing stiff competition and are looking for ways to reduce costs and increase headcount. The central banks are concerned that rising wages will further cement inflation.