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A sharp increase in wages in the German metalworking industry

They demanded 8 percent, they got 8.5 percent. The wage agreement signed by Germany’s powerful metalworkers’ union IG Metall may seem like a major victory at first glance.

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These negotiations are closely monitored because they are a reference for the entire German industry. And even beyond that, European Central Bank (ECB) leaders were watching for signs of a possible price-wage spiral, synonymous with runaway inflation.

IG Metall’s contract for the land in Baden-Württemberg, Germany’s automotive cradle, which could affect 3.9 million workers in the electrical industry, is actually more measured than it seems. Growth is spread over two years: 5.2% in 2023. in June and 3.3% in 2024. in May. These increases, which at other times could be considered very generous, are actually lower than the inflation rate of 11.6% in Germany last month. They will be accompanied by a tax-free premium of €3,000, paid…

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Source: Le Figaro

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