The trade unions push for wage increases for public sector in Germany. The trade unions request a 6% increase of wages of 2 million people in the country. The domestic consumption replacing exports as the engine of Europe’s largest economy. Therefore, the increase in payment will give another boost to the economy, stated the unions. In addition, the public sector is lagging behind in terms of wage growth to the private sector.
The trade union Verdi, which is one of the largest in the country, will negotiate the amount of wages on behalf of its members, and on behalf of four other unions. The talks to increase the salaries of employees in hospitals, schools and kindergartens (nearly 1 million people) will begin on January 1. Any achievement will affect the payment of another 1.1 million people.
“The employees in the public sector still have a lot of catching up to do with the development of tariffs in the private sector”, said the chairman of Verdi, Frank Bsirske. “In the past 15 years, income development has been much slower than in many other sectors. This is why we need tangible increases in salaries. A positive development of the real estate would also strengthen domestic demand”, added he.
In 2015 real wages, adjusted for inflation in Germany rose by 2.5%. This is the largest increase since 1992 and led to increased consumption.
For 2016, the Federal Statistical Office expects wage growth to 19 million employees in the private sector in Germany by 2%. This in turn will be the slow pay increases since 2011.