What is the role of wage rounds in the face of inflationary pressures? Germany’s top trade unionist draws a differentiated picture – and has a clear demand.
DGB boss Yasmin Fahimi considers immediate wage increases in times of inflation to be particularly important – but also sees limits. “It is absolutely clear that the current challenges cannot be solved with wage policy alone,” said Fahimi of the German Press Agency. “Then we would have to go into collective bargaining with wage demands of 15 percent and more.” The IG Metall, for example, is calling for 8 percent more money in the collective bargaining for the metal and electrical industry.
Fahimi described the wage agreements of the past few months and the current wage demands as “highly responsible and anything but exaggerated”. In times of inflation, the question of an immediate wage increase plays a central role.
Neither politics nor the collective bargaining partners could solve the current problems alone. “It is now precisely this interplay of political decisions and a collective bargaining policy that faces these realities that is important,” said Fahimi. High inflation will not simply go away. “We can’t make up for it sometime later with a real wage development.” Now that has to be balanced.
“A turning point in collective bargaining”
Collective bargaining went beyond the mere question of wages. “Many different aspects are weighed against each other – for example, the lack of skilled workers and profitability.” It is also about qualitative aspects such as working hours.
“There are industries with extremely high profits even now,” Fahimi noted. “Elsewhere, entire production lines are being closed.” Fahimi pointed to energy prices and supply chain disruptions.
“There must also be a turning point in collective bargaining,” demanded the trade unionist, referring to Chancellor Olaf Scholz’s statement about the turning point after Russia’s attack on Ukraine. “It is correct that the federal government is striving for joint steps in concerted action with the social partners.” Fahimi is involved in the concerted action against inflation started by Scholz.
“But you can’t always hold us accountable as social partners and at the same time watch how the collective bargaining agreement in this country goes down,” said the DGB boss. Fahimi demanded that employers should not withdraw from participation in their employers’ associations and the collective bargaining community. Overall, the social partners relieved politicians and ensured purchasing power and social peace. “The collective bargaining agreement is a valuable asset that the federal government must protect better.”
Source: Stern
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