Rising prices threaten wage disputes in Germany, warns union chief
By John O'Donnell and Christian Kraemer
BERLIN, Nov 15 (Reuters) -Rising prices are putting German workers under pressure, threatening to escalate wage disputes, the head of one of the country's top trade unions has warned.
Germany has suffered a spate of strikes in recent years, putting trains, planes, creches and other services out of action, exacerbating the country's problems as its economy grinds to a virtual halt.
As the economy has stuttered, prices have continued to rise, albeit at a slowing pace, triggering demands for higher wages.
Frank Werneke, chairman of the Verdi labour union, one of Germany's largest, said that prices were pressuring workers and that labour shortages, with hundreds of thousands of jobs still vacant, were giving them the confidence to demand more.
He said wages among bus drivers, security personnel or others had often lagged rising prices, triggering a rise in disputes.
"Striking is part of democracy," he said, warning politicians against any attempt to water it down.
"We are in a phase where there are more industrial disputes," he said. "It is not the case that inflation pressure is gone. We need to ... secure at least stable real wages ... in the coming wage negotiations."
Werneke's remarks underscore the continued threat from inflation to Germany's cooperative business model that traditionally married the interests of trade unions and companies, keeping strikes to a minimum.
"Lufthansa doesn't give something voluntarily. The airport operators don't give voluntarily," he said. "These are always tough negotiations. Without at least the possibility of going on strike, wage negotiations would be collectively begging."
In recent years, industrial action has become more commonplace. This includes recent strikes by workers in the electrical engineering and metal industries, which employ millions, that hit companies such as Porsche and BMW.
Werneke reiterated his support for Commerzbank, one of Germany's top banks, in fending off a possible takeover by an Italian rival, warning that such a deal could result in job losses.
Reporting by John O'Donnell; Editing by Chizu Nomiyama
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
