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German wage rises lowest in Europe
Published: 8 Sep 10 17:00 CET | Print version
Online: http://www.thelocal.de/money/20100908-29701.html
Wages have risen less in Germany over the past 10 years than anywhere else in the European Union, the national statistics office said Wednesday, a trend irritating France and other neighbouring countries.
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The European Union posted an average wage increase of 35.5 percent over the same period, and a rise of 36.1 percent in labour costs such as contributions to unemployment funds.
Data from Belgium, Finland and Ireland were not provided, while figures from Denmark, Greece and Italy remained confidential but were used to calculate the EU average, Destatis said.
Wage moderation has helped Germany remain the biggest European economy and has contributed to strong growth seen in the first half of 2010.
Less competitive countries such as France have complained that German wage constraint undermines consumption and say Germany relies too heavily on exports to keep its economic engine humming along.
French salaries have risen by an average of 30.5 percent since 2000, while non-wage costs have gained 39.1 percent, the data showed.
German salaries are established by each branch following negotiations between bosses and worker representatives, and there is no generalised minimum wage in the country.
AFP/mry
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Your comments about this article:
Who the FCK are the worker Rep´s?
, Oh I forgot, the german gov´t
Come and work in Germany then you will know what's the workers Reps.German Govt.? No.
We have unions here, independent from the govt. especially the IG metall that's the strongest Workers Union here In Germany.Each Union has workers reps.Hope it enlighten you.
I hope the last 26 years I´ve been working here in germany would qualify me to have a little knowledge, The unions hav´nt done SHT, Read the article.?
LOWEST in Europe?, Thanks to your Unions..........
As for me I'd rather be working than sitting at home looking at the help wanted ads.
Following that logic we would still be getting Industrial Era salaries, no?
And again 7% to 10% is a good difference, but it's not a third world country gap!
And about about the prices of services and basic things like food that keeps increasing?
But to pay the Banks bail out cash and huge salary and dividends to friends in high places its not a problem?!
Then its obvious only those living from H4 feel comfy... for the rest of the hard working class is a burden! But hey, who am I to know how to rule a country?
Just my 2 cents!
No one said anything about no pay rises. Pay rises have occurred in Germany. The article CLEARLY states this, even providing figures. The argument is that the rises were lower than in many other EU countries.
Reading is fundamental to understanding.
You are missing the point somewhat. In an ideal economy, pay is given to the worker in direct correlation to his or her productivity. Productivity in the Industrial revolution was low compared to what it is today hence the lower wages.
As an employer you always have to balance between the cost of your materials and machinery, a fair wage for your workers commensurate with their abilities and your ability to sell your products profitably in a highly competitive marketplace.
No profits no jobs.
It's that simple.
The vast majority of employers would love to give there workers more money but they can't because of the market conditions.
On the other hand who mortgaged their home, pawned their wife's jewelery and raided their own pension funds to start a business?
If I go bankrupt I lose everything! We should ponder the realities of business before we go over the top in condemning the lack of wage increases in Germany.