Collective bargaining policy in times of stagflation must compensate for the high inflation without putting too much strain on companies in the long term.
(Photo: dpa)
The framework conditions under which collective bargaining is currently taking place are certainly the most difficult in decades. Inflation tears through workers’ budgets and weakens their purchasing power, which in turn has a negative impact on consumption. At the same time, companies’ electricity and gas bills are growing every day, making them less competitive internationally. And given the war in Ukraine, business prospects are bleaker than ever.
In this mixed situation, it is almost a miracle that the chemical collective bargaining parties, which traditionally aim for consensus, have once again managed to come to a reasonable solution without a riot. The federal government’s offer to exempt special payments of up to 3,000 euros from taxes and duties was a golden bridge that the union and employers gratefully crossed.
The art of collective bargaining in times of stagflation lies in providing employees with inflation compensation without overburdening companies in the long term and without taking away the scope for investment. With the degree, IG BCE and BAVC show that they have mastered the art.
A good three percent wage increase at the beginning of the next year and the year after next is still manageable for the companies and gives the employees compensation for the inflation base, which has already built up and will not go away again. The possibility of postponing tariff increases also gives companies in economic difficulties the breathing room they need.
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The inflation peaks that are to be expected this year and next will be absorbed by the one-off payments that are exempt from tax and social security contributions. They reach the employees without deductions, but do not drive up the earnings and thus the costs of the companies in the long term.
With its subsidization of wage policy, the state is thus helping to reduce the danger of second-round effects and the dreaded wage-price spiral.
It is to be hoped that other sectors such as the metal and electrical industry or the public sector will also exercise common sense and take the chemical wage agreement and its smooth implementation as a blueprint. Because if there is one thing the country doesn’t need in the already irritable mood, it’s weeks of labor disputes.
More: Highest tariff demands for years – is the wage-price spiral now looming?