Verdi, the major German trade union for workers in the service sector, wants wages to be raised sharply due to soaring inflation. According to chairman Frank Werneke, people with low and middle incomes are particularly hard hit by the sharply rising prices of energy and food.
The Verdi union, which represents about two million German workers in areas such as public transport, healthcare, education, postal delivery, aviation and other services, believes there should be “clearly noticeable wage increases”. People with lower incomes should mainly benefit from this, according to the union.
Inflation in Germany rose to 4.1 percent in September, the highest level since the end of 1993. Moreover, higher wages can actually boost inflation even further because companies will pass on these wage costs in the selling prices. That is why wage developments are also important for the policy of the European Central Bank (ECB).
German wage developments are also closely monitored in Belgium. Because for the Belgian wage standard, the evolution of wages in our neighboring countries – as the most important trading partners – is always taken into account. The service sector is one of the largest in the country.