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German public sector workers have reached a deal in contentious collective bargaining talks with the country’s state governments on Saturday. The talks involve more than 1 million workers employed by Germany’s 16 federal states. The deal, struck by the verdi and dbb trade unions, will give workers €3,000 ($3,200) tax-free bonuses as well as raises of at least 5.5%. The deal will cost state governments an extra €23.9 billion ($25.8 billion) over the next three years, according to Hamburg Finance Senator Andreas Dressel, who served as the lead negotiator in the talks. The agreement is a “challen…

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