Germany: growing pressure for wage increase

Much pressure to increase wages.  “Workers should also enjoy growth” declared, this week, Minister for Employment and Social Affairs Ursula von der Leyen who, while refraining from intervening with wage negotiations, which are solely within the social partners’ province, also added that “growth belongs to those who created it first.”  Agreeing with stances taken by Chancellor Angela Merkel, Mrs. von der Leyen sent a clear political message to the social partners.  The message completely agrees with unions’ claims – the IG-Metall has recently started bargaining for 85,000 steel employees in three Länder and is asking for a 6% wage increase.  However, the message disagrees with employers’ message: “Currently, everything must be done to not hinder growth” declared Dieter Hundt, leader of the BDA employers’ organization in mid-August 2010.  “We can’t say that wages have particularly declined during the crisis and that we have to make it up now” he said, reminding that companies’ profit mostly suffered from the crisis and that the German economy isn’t back to its pre-crisis level.
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grees with unions’ claims – the IG-Metall has recently started bargaining for 85,000 steel employees in three Länder and is asking for a 6% wage increase. However, the message disagrees with employers’ message: “Currently, everything must be done to not hinder growth” declared Dieter Hundt, leader of the BDA employers’ organization in mid-August 2010. “We can’t say that wages have particularly declined during the crisis and that we have to make it up now” he said, reminding that companies’ pr

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