BERLIN: Millions of German industrial workers are set to get a 3.4 percent pay increase this year following a deal between employers and a major union.
Tuesday’s agreement will see the raise take effect in April. Workers will each get a one-time payment of 150 euros ($170) for January-March.
The raise falls short of the 5.5 percent IG Metall, Germany’s biggest industrial union, originally demanded for some 3.7 million workers but contrasts with the country’s annual inflation rate of minus 0.4 percent. The union has pointed to high corporate earnings and growth forecasts, arguing that domestic demand must be strengthened.
IG Metall represents workers in the automobile and machinery industries, among others. Tuesday’s deal was negotiated in Baden-Wuerttemberg state, a key industrial region, but is expected to be extended nationwide.
The State is pleased to provide this opportunity to share information, experiences and observations about what’s in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.