The trade union-linked research organisation WSI reports that negotiated pay increases across the economy reached 3.1% in the first half of the year, up on the 2.4% recorded in the comparable periods in the last two years. With inflation at 1.7% this means a real increase of 1.4%. The highest increases came in construction (5.2%), metal (4.0%) and the public sector (3.75%), with the last including 4% increases for new starters, lower paid and some specific occupations.
Positive wage trends in first half of 2018
More like this
(August 2016) Pay deals at an average of 2.5% in the first half of the year were slightly below the same period last year but delivered a 2% real increase in pay with inflation at only 0.5%. This is the main finding of the regular analysis of collectively negotiated pay deals published by the trade union-linked WSI research institute, part of the Hans Böckler Foundation. The major deals during this period included the 2.4% awarded to federal and local government workers and the 2.8% in the metall sector. Read more at WSI (DE).
After a range of protest actions and difficult negotiations the FNV and other trade unions are putting forward a new collective agreement covering 118000 civil servants for approval by their members. The agreement will run from 1 January 2018 to July 2020 and include pay increases of 3% on 1 July 2018, 2% on 1 July 2019 and 1% on 1 January 2020. With a one-off payment of EUR 450 on 1 January 2019, the deal is worth around 7%. There are various other measures included that cover employability, options on leave and an individual budget arrangement that allows choice between holidays and bonuses.
(March 2017) The annual benchmarking report from the European Trade Union Institute provides an overview of latest developments in wages and collective bargaining. It notes a trend towards higher real wages, particularly in central and Eastern Europe, mainly as a result of low inflation. There has also been growth in minimum wages but most are still at a very low level. It also found that the decline in collective bargaining coverage continued and was very pronounced in southern and eastern European countries.