German negotiated wages rise by 2.1 percent in first quarter

Negotiated wages in Germany rose by 2.1 percent on average in the first quarter compared with the same period last year, data showed on Monday, boosting expectations that private consumption will prop up growth in Europe’s largest economy this year.

Negotiated wages, as reported by the Statistics Office, include collectively agreed basic pay as well as special payments like one-off payments, annual bonuses and back payments from wage deals.

Negotiated wages rose more sharply than consumer prices, which increased by 0.3 percent during the same period.

Roughly 19 million workers in Germany are represented by unions who negotiate pay agreements every one or two years.

Analysts say wage hikes secured by German unions for more than 6 million employees so far this year are relatively moderate compared to last year’s agreements.

Source: Reuters