Germany: first pay bargaining round in construction failed

5.9% wage increase.  Unsurprisingly, the IG BAU union and the two key employers’ organizations in the sector, the Central Union of Construction Firms (ZDB) and the Construction Employers’ Federation (HDB) announced, on march 4th, the failure of their first negotiations and their delay until march 24th in Berlin.  Pointing to the sector’s good economic health, the construction union wants a 5.9% wage increase for nearly 700,000 employees, a minimum wage increase, as well as leveling between wages paid in the east and in the west (see our dispatch No.  110045).  “Employees’ work contributed to the sector’s upward evolution.  In return, and this is only fair, they would like to see their performances mirrored on their paychecks” said Dietmars Schäfers, IG BAU chief negotiator, deploring the lack of figured offer from employers.
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ted to the sector’s upward evolution. In return, and this is only fair, they would like to see their performances mirrored on their paychecks” said Dietmars Schäfers, IG BAU chief negotiator, deploring the lack of figured offer from employers.

Threat of inflationist spiral. The IG BAU’s claim is in line with the general trend. With growth back, many unions, like the IG BAU, are asking for substantial wage increases. Thus, the IG BCE chemistry union is also calling for a 7% wage increase for

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