Germany’s largest trade union, IG Metall, is demanding a wage increase for its 3.8 million employees from 7% to 8% in order to cope with the rapid price increase.
According to Bloomberg, the proposal made today by the leadership of IG Metall is the highest in the last 13 years, taking into account the Bundesbank forecast for the average price increase in 2022 in Europe’s largest economy.
The negotiations, which begin in September, will be the largest wage settlement in Germany, which may set the stage for the overall course of wages in the country.
It is noted that the ECB is closely monitoring such collective bargaining, with its officials warning that sharp increases in wages could spark an inflationary spiral.
For his part, IG Metall President J Χrg Hoffmann called on politicians to help alleviate the burden of rising living costs.
“Compensating for inflationary pressures in the current situation” cannot be the subject of collective bargaining alone, “he told a news conference Monday.
Source: Capital
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