The golden bridge of politics prevents wage-price spiral – for now

Striking tariff demand

IG Metall was not able to push through its demand for eight percent more money for twelve months, and yet there is a strong increase in wages.

(Photo: IMAGO/BildFunkMV)

Berlin Eight and a half percent more standard wages and then another 3,000 euros on top – that sounds like a lot of money. And yet the bargaining parties in the metal and electrical industry have succeeded in distributing the burden of the crisis on both sides. Employees have to accept that the real and foreseeable price increases will not be fully offset.

The companies had to bury initial zero round fantasies. However, if they are in economic difficulties, they can suspend payments. And the long term gives you planning security.

>> Read also: Economists on high wage agreements – Are far away from the wage-price spiral

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