Germany - Wage agreement in metal - May 31, 2016

Trade union IG Metall and employers in North Rhine-Westphalia reached a wage agreement that could pave the way for a further boost to real incomes in Europe’s largest economy. The deal in North Rhine-Westphalia is for a 4.8 percent pay rise in two steps, covering some 700,000 workers. The union said the talks should serve as a model for metal workers in other regions. With unemployment at a record low, workers have been able to push for higher pay even with inflation weak and disposable income getting a boost from falling fuel prices. That’s helped support consumer demand, which along with government spending helped the economy to grow at its fastest pace in two years at the start of 2016.

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