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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GERMANY
The outcomes of upcoming wage negotiations will be key to the broader German (and Eurozone) inflation outlook as they will almost certainly result in broad-based wage gains. Approximately 12 million employees in Germany will be affected by collective wage agreements expiring in 2024, according to German labour market institute WSI. That figure represents ~26% of total employment, vs close to 11M in 2023.
- Most renegotiations will begin around the time of the expiration of the previous agreements. The expirations scheduled cluster in March, September, and December, with March expirations made up mostly by the construction industry, September by the metal and electrical industries, and December by the public sector (federal and communal level). See chart below for the agreement expiration schedule (from WSI).
- Negotiations of state public sector workers wages last December, affecting around 2.5mln persons, resulted in increases of E200 starting this November and another 5.5% starting in Februrary 2025, as well as a tax-free one-off payment of E3k.
- Current official unions' demands for upcoming negotiations include 12.5% wage increases for employees of airline Lufthansa, and 12% increases for employees of the printing industry. However, actual long-term increases will likely be lower than the headline figure demanded, as was the case in the most recent state public sector negotiations.
- For a historical perspective, see below table on German yearly negotiated wage increases according to the WSI, which tracks collective agreements.
| Date | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Negotiated Wage Increases, % Y/Y | 3.0 | 2.9 | 2.0 | 1.7 | 2.7 | 5.6 |
MNI, wsi.de
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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