German metalworkers union sticks to 7% pay raise demand

Germany’s largest industrial union, IG Metall, has officially backed a 7 per cent wage increase demand, reiterating its earlier recommendation ahead of upcoming collective bargaining negotiations.

The union, representing 3.9 million workers, emphasised the continued high costs faced by consumers despite declining inflation rates.

In a statement on Tuesday, IG Metall highlighted its stance despite opposition from the sector’s employers’ association, which includes major firms like Thyssenkrupp and Siemens Healthcare. These companies have deemed the demand excessive.

The European Central Bank (ECB) has expressed vigilance over wage growth, a crucial factor for its monetary policy decisions following recent interest rate cuts. German consumer price inflation registered 2.5 per cent in June, down from 2.8 per cent in May, setting the backdrop for the upcoming negotiations.

Attribution: Reuters.