Increasing wages, decreasing incomes. At first glance, the evaluation of collectively-agreed wage increases (7.9 million employees) is satisfactory. In average, wages increased of 2.6% in 2009 (3% in the east), with a maximum of 4.1% in energy and a minimum of 1.4$ in retail trade. Since prices only increased by 0.4% over the same period, real wage increase therefore amounts to 2.2%. Nevertheless, when considering the real increase of Germans’ gross income in 2009, the trend is reversed with a 0.8% drop. Thus, 2009 is the sixth consecutive year where real income decreases, WSI experts point out. This paradox can be explained by massive appeal to short-time working as well as the withdrawal of many bonuses that aren’t included in agreements or which depend on the economic situation. According to what the WSI gathered from German WCs, around 22% of businesses cancelled different bonuses. The DGB also said that, for 92% of employees affected by collective bargaining in 2009, wage increases were divided in time, even deferred, and oftentimes with a single bonus as compensation. Besides, for 7.9 million employees, the increases received in 2009 were negotiated in 2008 with collective agreements valid for 24.1 months in average.
less, when considering the real increase of Germans’ gross income in 2009, the trend is reversed with a 0.8% drop. Thus, 2009 is the sixth consecutive year where real income decreases, WSI experts point out. This paradox can be explained by massive appeal to short-time working as well as the withdrawal of many bonuses that aren’t included in agreements or which depend on the economic situation. According to what the WSI gathered from German WCs, around 22% of businesses cancelled different bonu
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