28.9 C
New York
Wednesday, July 6, 2022

German state civil servants secure consumption-boosting pay hikes

German state civil servants secure consumption-boosting pay hikes© Reuters. German state civil servants secure consumption-boosting pay hikes

POTSDAM, Germany (Reuters) – Germany’s more than one million public-sector workers in the country’s states on Saturday secured pay hikes of 8 percent over 33 months, a deal likely to boost consumption and provide impetus for an economy increasingly dependent on spending for growth.

The pay rise falls short of demands by the Verdi trade union for a 6 percent increase this year for civil servants at the state level.

Still, the pay hikes are largely in line with other wage agreements. More than 2 million civil servants at the federal and municipal level agreed last year to a pay increase of some 7.5 percent over 2-1/2 years.

Europe’s largest economy, which is expected to grow for the tenth successive year in 2019, is facing headwinds from trade hostilities that are hurting its export-dependent manufacturers.

As exports weaken, state spending and private consumption have become growth drivers. Wage increases and low borrowing costs owing to record-low interest rates have been providing impetus for the cooling economy.

“This is the best result at the state level in many years,” Verdi chief Frank Bsirske said after the agreement was reached in the city of Potsdam, west of Berlin.

The deal foresees an increase of 3.2 percent this year, an equal hike next year and a 1.4-percent raise in 2021.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

11,296FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles