Germany: the IG BAU, the building union, demands a 6% wage increase

Full order books. The order books of the sector’s companies are full until at least mid-2009. In addition, they should benefit from the €50 billion recovery plan presented in mid-January by the federal government. As an answer to the IG BAU’s claims, the Central Association of German Craft Industry and Trades (ZDH) called for moderation and reminded that the sector should suddenly enter the crisis in 2010. Klaus Wiesehugel, leader of the IG BAU, thinks that the negotiations won’t be a “walkover”, although he thinks that a compromise on the duration of the agreement might be possible. It could last 24 months instead of the 12 months currently required. Besides, the union wants gross hourly minimum wage in eastern Germany to be brought into line with the wage level of western Germany. This would represent an increase from €13.80 an hour to €15.48. The ZDH is reluctant to this too, saying that the building market is “much tougher than in the west.”
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rom the €50 billion recovery plan presented in mid-January by the federal government. As an answer to the IG BAU’s claims, the Central Association of German Craft Industry and Trades (ZDH) called for moderation and reminded that the sector should suddenly enter the crisis in 2010. Klaus Wiesehugel, leader of the IG BAU, thinks that the negotiations won’t be a “walkover”, although he thinks that a compromise on the duration of the agreement might be possible. It could last 24 months instead of t

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