Overall wage growth? What about overall wage growth? One likely explanation for the still rather modest pay demands (in the context of the current macro backdrop) of 6% – besides the above-discussed issues of the 28h option in metal or the 13th month salary in construction – is that manyRead More →
Public sector – Focus Public sector – Focus should be on pay Talks in the public sector (for employees at the federal level and in municipalities) will start on February 26 th (rounds 2 and 3 are planned for mid- February and mid- April). The public sector union ver.di willRead More →
Education and training extremely important The area of education and training also reflects Germany’s mature and unique model of the (welfare) state. Education is considered to be the responsibility of the state while training is also the result of a partnership between trade and industry and the state. The collaborationRead More →
Construction sector has only one centralized bargaining process In contrast to the metal sector’s regional approach, the construction sector has only one centralized bargaining process, which negotiates one joint contract for the construction industry and the building craft for the whole of Germany. The first round of talks will takeRead More →
Conflicts between net contributors Given the budget constraints left by Brexit, conflicts between net contributors and net recipients are almost inevitable and the risk of prolonged deadlocks in upcoming negotiations is considerably high. Matters could become even more complex if considerations within the Commission to link budget payments to complianceRead More →
Wage contracts for close to 10m employees are up for renewal Other sectors? Watch construction! In 2018 wage contracts for close to 10m employees are up for renewal, i.e. About 1⁄4 of all employed persons in the country. Besides the metal sector (3.9m), there are two other heavyweights – theRead More →
Wage talks tend to develop their own internal dynamics And if not? Wage talks tend to develop their own internal dynamics and may – despite the first positive signs of a solution – still hit a wall: That would mean that talks are declared failed by the unions. This wouldRead More →
Employers unlikely to subsidise lower working hours Watch negotiations in the south-west We still do not expect that employers will agree to subsidise lower working hours. But we expect them to improve their wage offer further in exchange for more symmetric working-time flexibility. During the 5 th round of talks,Read More →
National sensitivities related to budget Risk of deadlocks – and no timely agreement – ahead The three scenarios illustrate the national sensitivities related to budget adjustment in the next Multiannual Financial Framework, either through cuts on the spending or increases on the cost side. They are anything but exhaustive. TheRead More →
Option to cut working hours to 28 IGM’s request for an individual option to cut working hours to 28 increases complexity Matters have been complicated further by IGM (the metal sector union) demanding an option to reduce individual weekly hours to 28 for up to two years, with a EURRead More →
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