Amid ongoing collective‑bargaining disputes-particularly those involving the railways and public sector- the German Institute for Economic Research has proposed a new benchmark for wage increases.
DIW chief Marcel Fratzscher told the Redaktionsnetzwerk Deutschland that discussions about higher wages consistently ignore productivity. “If workers can show that they are producing four percent more during their working hours each year, then it is perfectly legitimate for salaries to rise by the same amount” he said.
Fratzscher sees workers’ bargaining power as significant. Though there are three million unemployed, there are also 1.6 million job openings, giving workers a strong position. “At least those covered by collective agreements and unions-roughly half of all employees-benefit from this advantage” he noted.
