Tuesday, February 24, 2015

German wage agreement gives shot in the arm – Swedish newspaper Svenska Dagbladet

German wage agreement gives shot in the arm – Swedish newspaper Svenska Dagbladet

The German mighty industrial union IG Metall has managed to strike a deal with employers on wage increases of 3.4 percent in a one-year contract. In addition, they receive a one-off payment of 150 euros, equivalent to more than 1400 crowns, reports Reuters.

Swedish compartments usually look at what Europe’s largest economy has for wage growth. And for the next major wage negotiations next year teaches IF Metall and the second point to German wage agreements. Admittedly, IG Metall agreement only one year, but will still be a hint. Swedish wage agreements provide just over two per cent during the three-year contract last year.

IF Metall agreements secretary Veli-Pekka Säikkälä welcomes the new wage agreement.

– The is very good that the Germans come to an agreement at this level. They have had a fairly low wage growth in Germany during the 2000s and many have thought that it is time for Germans to start picking out higher wage increases. This helps to get started consumption throughout Europe, he says to news agency Direkt.

The signed German wage agreement in force in the country’s southwest region, including in the industrial area where Daimler and Bosch has been manufacturing, but is expected to have repercussions on the entire German labor market.

The agreement provides wage increases more than three times higher than the German inflation, which last year was just under one percent.

In Sweden, inflation is even lower, at around zero, and Employers’ Confederation of Swedish Enterprise has been flagged for wage scope is therefore very limited.

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