Unions are pushing for high wage claims: tariff dispute threatens!

Unions are pushing for high wage claims: tariff dispute threatens!

The economic crisis in Germany has dramatic effects on the upcoming electoral system. According to a current analysis, populist parties could increase up to two percentage points of votes if inflation is higher than expected. Increased wage increases that do not optimally prepare for the inflation shock have special influence. Jonathan Federle, an IFW expert, stated: "Extreme parties benefit if the price increases are higher than expected." In the past three years, inflation and economic growth in Germany have deviated significantly from expectations, which increasingly reinforced these developments, as well as vienna.at reported.

collective bargaining under pressure

The high cost of living are the focus of the current collective bargaining in Germany. Unions sometimes demand drastic wage increases of up to 15 percent to compensate for the effects of inflation. Employers, on the other hand, enter for one-off payments and warn of a possible wage price spiral that could further tighten the economic difficulties. These tense negotiations could lead to serious industrial struggles because the positions between the parties are far apart. According to tagesschau.de , the uncertainties through the Ukraine conflict and the associated energy price increases have also complicated.

The tariff degrees are crucial for 2023 because consumer prices have risen steeply and high inflation rates are still forecast for 2023. In this tense economic climate, it will be crucial how the various parties can react to the pressing requirements in order to ensure the satisfaction of employees and to regain trust in political stability.