HAMBURG (Reuters) – IG Metall, Germany’s most influential trade union, on Monday called for wage hikes of 7% to 8% after talks about to begin in the metalworking and construction sectors. the mechanical industry, representing some 3.9 million employees.
This demand, which must be submitted to the union representatives of the various sectors concerned on July 11, is based on the acceleration of inflation in Germany as in almost all the countries of Europe against a background of soaring prices of energy.
IG Metall also justifies it by the high level of profits of car manufacturers Mercedes-Benz and BMW.
He adds that an increase of this magnitude would remain insufficient to offset the rapid increase in electricity and gas prices, the level of which, in his view, requires new government measures to reduce the costs borne by German households.
The wage increases provided for in the agreements concluded by the trade unions and the employers’ organizations are generally less generous than the initial demands of the employees. Nevertheless, the figure claimed by IG Metall risks worrying the European Central Bank (ECB), one of whose main concerns is the threat of a wage/price spiral which would sustainably fuel inflation.
(Report Jan Schwartz, Illona Wissenbach and Balazs Koranyi, French version Marc Angrand)
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