Trade unions - Fahimi relies on "responsible" wage agreements
For the new year, DGB head Yasmin Fahimi is counting on collective wage agreements that will provide noticeable financial relief for employees. The pressure on wallets is still great in many areas, Fahimi told the German Press Agency in Berlin.
"In the last 18 months, the trade unions in Germany have succeeded in alleviating the great inflationary pressure with very good wage agreements across all sectors," said Fahimi. "I assume that the trade unions will also find appropriate and at the same time responsible agreements in the wage negotiations in the new year."
Twelve million employees under the DGB umbrella affected
According to the Institute of Economic and Social Sciences of the Hans Böckler Foundation, which has close ties to the trade unions, collective agreements agreed by the DGB trade unions will expire for almost twelve million employees by December 2024. For example, the collective agreement for the chemical industry expires in June 2024. Collective bargaining in the metal and electrical industry is also set to begin again in the fall.
According to Fahimi, real wages could have been increased in recent months, not least through payments to compensate for inflation. "This makes economic sense, not least because it prevents purchasing power from collapsing in a difficult economic situation." Inflation compensation payments totaling 3,000 euros in 2023 and 2022 were agreed for the public sector, the chemical industry and the metal and electrical industry.
"The popular myth that our wage settlements may be an additional driver of inflation has been refuted." This has been confirmed by all economists - and this can also be clearly seen in the rate of price increases, which has since fallen again.
Fahimi calls for the implementation of the law on wage loyalty
"The real problem is that only every second person is still protected by collective agreements," said Fahimi. "Where this is not the case, there is sometimes an immense loss of purchasing power." There, wage development does not correspond to price increases - especially for income groups at the lower end.
Fahimi therefore insisted on the law on wage compliance planned by Federal Minister of Labor Hubertus Heil (SPD). Heil wants to implement the agreement in the coalition agreement, according to which only companies that adhere to collective agreements are to be awarded public contracts by the federal government. "I appeal to the federal government to finally implement the Federal Collective Bargaining Act," said Fahimi.
"That would be an important signal that public funds are no longer being used to co-finance business models that contradict our understanding of social partnership." More collective bargaining coverage is about good working conditions. "If this does not happen, politicians will be increasingly faced with the challenge of getting exploitative working conditions under control," warned the head of the DGB. "And the economic damage caused by the lack of income tax, social security contributions and loss of purchasing power already amounts to 130 billion euros."
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- The Hans-Böckler-Foundation, with its close ties to German trade unions, has forecasted that bargaining for new wage agreements will commence for approximately twelve million employees under the DGB umbrella by 2024.
- Yasmin Fahimi, the DGB's head, commended the significant impact of preceding wage agreements in mitigating inflationary pressure across various sectors, particularly in the metal and electrical industry's upcoming negotiations.
- Following Yasmin Fahimi's advocacy, the government has agreed to inflation compensation payments of 3,000 euros for employees in the public sector, chemical industry, and metal and electrical industry in 2022 and 2023.
- Employers and trade unions in Berlin are set to negotiate new wage deals heading into the turn of the year, with DGB calling for responsible agreements to provide significant financial relief for workers amidst continued economic strains.
- The German Press Agency reported that according to Fahimi, only half of the workforce is currently safeguarded by collective agreements, which has resulted in significant purchasing power loss for the lower income brackets, as their wage development does not match inflation rates.
- Fahimi demanded the enforcement of the planned Federal Collective Bargaining Act, a policy proposed by Minister of Labor Hubertus Heil, to prevent federal funds from supporting businesses that violate the principles of social partnership and exploit their employees.
Source: www.stern.de
