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German productivity up thanks to lower wages
Published: 1 May 12 11:30 CET | Print version
Updated: 1 May 12 23:46 CET
Online: http://www.thelocal.de/national/20120501-42273.html
Germany has Europe’s most efficient workers and their productivity has increased largely because wages have not kept up, data released Monday from the Federal Statistics Office showed.
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Warning strikes have already taken place by workers demanding better wages and conditions. The union wants a 6.5 percent wage hike and the unconditional hiring of trainees following their internship period.
Massive demonstrations are expected Tuesday, Labour Day, all over the country, with violence expected, as usual, in some Berlin neighbourhoods. Police have called in for reinforcements, as is the custom, for the day.
The data office said average productivity per hour worked rose 3.4 percent in the European Union between 2005 and 2010.
But Germany posted a 4.0 percent increase for the time period, while in France it was 3.0 percent and Italy showed virtually no gains.
Overall, unit labour costs rose 6.2 percent in the EU, but were only 3.6 percent higher in Germany, due to the moderate wage increases in the last years.
Except for the crisis years of 2008 and 2009, unit labour costs actually declined in Germany between 2005 and 2010, the data office said.
DAPD/The Local/mw
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Your comments about this article:
Completely correct, the other problem is the unemployment office in league with these agencies and if some journalist would take the time to investigate this link I'm am sure there would be some dark practices to uncover.
However the German press seem to pull the party line of whoever is in power ,free press it may be but toothless it is.
So as in ever major European country the gap between rich and poor grows year on year how long this trend can continue before people wake up I don't know.
What is really worrying is that in the rest of the EU the costs with the labour per unit increase faster then productivity. People should earn more, but there should be a sustainable basis behind it (education/qualification which generate increased efficiency/productivity).