Germany: growth is starting to show in wage increases negotiated in 2011

Moderate but durable increases.  According to the latest quarterly monitor of wage negotiated within the framework of sectoral collective agreements of the Hans Böckler foundation, collective negotiations for the first 2011 quarter amount to an average 2.3% increase over one year for the 4.5 million employees concerned, i.e. 0.5% more than at the same time in 2010.  The record is held by the chemical industrial with a 4.1% increase over 15 months.  Many other sectors granted 3% increases.  This increase is relative when taking account the wage increases for 2011 negotiated last year.  These affect 7.8 million employees who will get a 1.8% wage increase this year.  All in all, the average increase for the first 2011 quarter is 2% for 12.3 million employees.  Reinhard Bispinck, in charge of this monitor, said that this intermediary report shows “the impact growth has on wage increases.”  Nevertheless, Bispinck said he was “moderately optimistic” because the increase “might partly be eaten up by the increase in consumer prices.”  However, he pointed to the fact that the average duration of agreements is starting to decrease, now down to 23 months.  Besides, giving single bonuses in lieu of an increase, which was very common during the crisis, is being replaced by a return to durable increases.
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Reinhard Bispinck, in charge of this monitor, said that this intermediary report shows “the impact growth has on wage increases.” Nevertheless, Bispinck said he was “moderately optimistic” because the increase “might partly be eaten up by the increase in consumer prices.” However, he pointed to the fact that the average duration of agreements is starting to decrease, now down to 23 months. Besides, giving single bonuses in lieu of an increase, which was very common during the crisis, is bei

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