German negotiated wages lift by 2.1% in the first quarter
In Germany, negotiated wages managed to go up by 2.1% in the first quarter compared with the same last years’ period, according to the data published on Monday. It undoubtedly drove expectations that private consumption is going to rise in the EU’s number one economy this year.
As reported by the Statistics Office, negotiated wages come with collectively agreed basic pay, to say nothing of special payments such as one-off payments, back payments as well as annual bonuses from wage deals.
In fact, negotiated wages edged up more steeply compared to consumer prices, which soared by 0.3% for the same period.
Approximately 19 million employees in this European country are represented by unions, traditionally negotiating pay agreements every one or two weeks.
Financial experts point out that wage hikes secured by German unions for about 6 million employees so far this year appear to be relatively modest compared with last year's agreements.