Major German Union Wants Substantial Wage Increases Against Inflation

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The major German trade union for service workers Verdi wants wages to be raised significantly because of the sharply rising inflation.

 

According to Verdi chairman Frank Werneke, people with low and middle incomes are particularly hard hit by the sharply rising prices of energy and food.

Verdi, which represents about 2 million workers in areas such as public transportation, healthcare, education, mail delivery, aviation and other services, believes there should be “clearly noticeable pay increases.” People with lower incomes should mainly benefit from this, according to the union.

Inflation in Germany rose to 4.1 percent in September, the highest level since the end of 1993. Moreover, higher wages can actually boost inflation even further because companies will pass on these wage costs in the selling prices.

That is why wage developments are also important for the policy of the European Central Bank (ECB).

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