Germany reaches wage deal with public employees

BERLIN — Union and government officials in Germany say they have agreed on a new wage deal for some 2 million public employees.

The two sides said Sunday that the agreement reached late Saturday includes a pay increase of 1.2 percent retroactive to January, to be followed by a 0.6 percent increase in January 2011 and 0.5 percent in August 2011.

Union leader Frank Bsirske says the result is better than was offered but less than hoped for.

He says: "This is no result that is cause for celebration."

Interior Minister Thomas de Maiziere says the two sides came to a "responsible compromise" given the bad economic times.