🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Rising prices threaten wage disputes in Germany, warns union chief

Published 11/15/2024, 02:53 AM
Updated 11/15/2024, 02:55 AM
© Reuters. FILE PHOTO: Frank Werneke, Chairman of the German united services trade union ver.di attends a news conference in Berlin, Germany, March 23, 2023. REUTERS/Annegret Hilse/File Photo
CBKG
-
BMWG
-

By John O'Donnell and Christian Kraemer

BERLIN (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."

© Reuters. FILE PHOTO: Frank Werneke, Chairman of the German united services trade union ver.di attends a news conference in Berlin, Germany, March 23, 2023. REUTERS/Annegret Hilse/File Photo

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 (ETR:BMWG).

Werneke reiterated his support for Commerzbank (ETR:CBKG), 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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.