The earthquake that is Germany, a continuing series

Germany's public employees, long perceived as lazy bureaucrats insulated from real-world pressures, are now facing the same demands for lower costs and more flexibility from governments that their counterparts in the private sector have been confronted with from German companies.

In negotiations taking place in Potsdam, just outside Berlin, federal and local governments are demanding not only a wage freeze but also the ability to extend working hours and curb overtime benefits, in what would be the biggest overhaul of state work rules in more than 40 years.

And what is the response from the labor unions?

"We are flexible, but we need to see a salary increase."

Here is a previous installment in the Germany series.