Germany - Modest pay increases in first half year - August 10, 2010

In July, the Institute of Economic and Social Research (WSI) presented its interim report on the 2010 collective bargaining round, evaluating agreements concluded in the first half of the year. These affected about 7.1 million employees or 37% of all employees covered by collective agreement. Calculated on an annual basis, the average pay increase in wages based on collective agreements will be 1.7%, well below the average increase of 2.6% in 2009. The average increase in eastern Germany was estimated to be 2.0%, bringing this average above that in western Germany (1.7%). In particular the eastern wage hikes were considerably higher in the food industry (3.9% against 2.3% in the western part) and in raw materials and production industries (3.4% against 2.1%). Overall, average collectively agreed pay in eastern Germany will amount to 96.2% of average western German pay levels in 2010, slightly above the 96.1% reached at the end of 2009. As the WSI notes, the effects of the economic crisis had an impact on bargaining in a number of important industries. In particular, in the metalworking and steel industries the bargaining parties were keen to conclude agreements which included measures to help maintain existing employment levels, most frequently through the extension of short-time arrangements (See also this Collective Bargaining Newsletter Year 3 February 2010).




This article was published in the Collective Bargaining Newsletter. It aims to facilitate information exchange between trade unions and to support the work of ETUC's collective bargaining committee. For more information, please contact the editor Maarten van Klaveren, Amsterdam Institute for Advanced Labour Studies (AIAS) You may find further information on the ETUI, and on the AIAS at © ETUI aisbl, Brussels 2009.


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