Rising Prices Pressure German Workers

By John O'Donnell and Christian Kraemer

BERLIN (Reuters) – Rising prices are putting German workers under pressure, threatening to escalate wage disputes, the head of one of the country's top trade unions has warned.

Germany has suffered a spate of strikes in recent years, putting trains, planes, creches, and other services out of action, exacerbating the country's problems as its economy grinds to a virtual halt.

As the economy has stuttered, prices have continued to rise, albeit at a slowing pace, triggering demands for higher wages.

Frank Werneke, chairman of the Verdi labor union, one of Germany's largest, stated that prices were pressuring workers and that labor shortages, with hundreds of thousands of jobs still vacant, were giving them the confidence to demand more.

He noted that wages among bus drivers, security personnel, and others had often lagged rising prices, leading to an increase in disputes.

"Striking is part of democracy," he emphasized, warning politicians against any attempts to undermine this right.

"We are in a phase where there are more industrial disputes. It is not the case that inflation pressure is gone. We need to secure at least stable real wages in the coming wage negotiations."

Werneke's remarks highlight the ongoing threat from inflation to Germany's cooperative business model, which has traditionally aligned the interests of trade unions and companies, minimizing strikes.

"Lufthansa doesn't give something voluntarily. The airport operators don't give voluntarily," he pointed out. "These are always tough negotiations. Without at least the possibility of going on strike, wage negotiations would be collectively begging."

In recent years, industrial action has become more common, including recent strikes in the electrical engineering and metal industries, affecting major companies like Porsche and BMW.

Werneke also expressed his support for Commerzbank, one of Germany's top banks, in resisting a potential takeover by an Italian rival, warning that such a deal could lead to job losses.