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The leadership of Germany’s metalworkers’ union IG Metall on Monday recommended that its members demand a 7% wage increase in the next round of collective bargaining, well above the current inflation rate.
Germany’s largest industrial union IG Metall said in a statement that a regional council would decide on the union’s official wage demands on Friday.
IG Metall said the round of talks, which represents 3.9 million workers, should lead to a sharp rise in wages as the companies have a large backlog of orders.
The union added that while inflation may have fallen, further wage increases were necessary so that workers could cope with high price levels.
The ECB said this month it would monitor wages closely after cutting interest rates for the first time since 2019, encouraged by a drop in inflation to just above its 2% target in the near term from 10% in 2022.
However, doubts have arisen about further rate cuts as ECB policymakers signaled strong price pressures and wage growth, which could keep inflation above target well into next year.
German consumer price inflation was 2.8% in May, up from 2.4% in April.
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