ECONOMY

Wed 15 Mar 2023 9:28 pm - Jerusalem Time

Before Labor Day... German unions demand higher wages

Berlin - (dpa) - A day before Labor Day, which falls on Sunday, German unions have called for a significant increase in workers' wages to offset high inflation.


The head of the IG Metall union for workers in the industrial and mining sector, Jörg Hoffmann, told the German newspaper "Rheinische Post" published today, Saturday: "For two years, we have adopted a responsible salary policy due to the pandemic ... the focus was on preserving job opportunities." In the midst of the deepest post-war recession in our history, our members now expect a significant increase in wages."


Hoffman added that "balancing inflation cannot be a matter for the trade unions alone," explaining that "this is also an issue for the state, which must ease the burdens to ensure that workers can afford high energy prices."


Hoffman does not expect the risk of a spiral of wages and prices, which means that higher wages inevitably lead to higher product prices, explaining, on the other hand, that “given the high demand resulting from the catching-up process from the crisis and the decrease in supply partly in return due to the disruption of supply chains, companies were able to transfer Almost all increases in energy and raw material prices are passed on to consumers.


According to preliminary calculations by the Federal Statistical Office, the inflation rate in Germany in April was 7.4 percent on an annual basis.


The head of the "Verdi" union for workers in the service sector, Frank Wernicke, said that the ball is now in the employers' court.


"In the rounds of collective bargaining, we want at least compensation for price increases, and if it is possible to achieve an increase in real wages," Wernicke said in remarks to the German newspaper "Augusburger Allgemeine" issued today, Saturday.

Share your opinion

Before Labor Day... German unions demand higher wages

MORE FROM ECONOMY