The Economic and Social Institute (WSI) and the Hans Blocker Foundation - German unions' think tank" - drew the first conclusions of the collective agreements signed in 2008. In terms of innovation, they are starting to include the demographic ageing factor. However, in spite of high wage increases, inflation is still slowing down incomes' real progression. In 2009, the crisis will make collective bargaining harder, because employees' expectations remain strong. Here is an overview. (Ref. 081008)
Without any doubt, in 2008, the WSI notes a substantial increased of wage agreements: “However, because of the strong price increases and inflation, real gains for employees are rather moderate” said Reinhard Bispinck, WSI expert on collective agreements. In spite of a strong decrease in oil prices and a general price decline over the end of the year, the Institute of Economic Research of Munich (Ifo) is expecting an average 2.4% inflation rate for 2008 (2.2% in 2007), i.e. the highest inflatio
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