Display:
The World from Berlin: German Rail Deal Could Spell Trouble for Economy - International - SPIEGEL ONLINE - News

After 10 months of bitter bargaining and crippling strikes, Germany's train drivers have clinched 11 percent more pay and the right to their own, separate labor contract. That, say media commentators, spells trouble for Germany's system of collective wage bargaining.

 Job done: Engine-driver union GDL leader Manfred Schell has secured 11 percent more pay and key concessions from railway operator Deutsche Bahn. Germany's train drivers finally appear to have reached an agreement on pay and conditions with railway operator Deutsche Bahn after a 10-month dispute that brought chaos to the network.

The GDL train drivers' union and Deutsche Bahn said on Sunday they were close to reaching a deal and that only details had yet to be ironed out. German media commentators say the small GDL union has emerged the winner, having clinched an 11 percent wage hike, an €800 ($1,182) one-off payment and crucially, the right to negotiate separately from the country's two other, bigger railway unions. Deutsche Bahn managed to resist GDL's initial demand of 31 percent more pay but failed in its bid to keep the GDL locked into a sector-wide labor contract.

Some commentators say the deal could spell trouble (more...) for Germany's system of industry-wide wage bargaining, a tradition that has been credited with ensuring relatively smooth industrial relations for decades. Both doctors and pilots have led the way in splitting off from larger, collective bargaining agreements. Now that the country's engine drivers have secured their own separate wage contract, other distinct job categories within the industrial sector may decide to follow suit, starting a trend that could lead to frequent labor disputes and crippling strikes.

by Fran (fran at eurotrib dot com) on Tue Jan 15th, 2008 at 12:26:35 AM EST
[ Parent ]
SPIEGEL alert

Train drivers are unlike doctors and pilots in that they really did not get paid all that much (1500 euros net pay on average for a 41 hour work week, with travel time 55 hours).

by nanne (zwaerdenmaecker@gmail.com) on Tue Jan 15th, 2008 at 03:49:55 AM EST
[ Parent ]
True, but generally speaking the German collective bargaining system has historically been an effective tool for improving the standards of living of working people. It's getting badly frayed these days (for which the employers must bear most of the blame), and that's not good.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Tue Jan 15th, 2008 at 03:54:00 AM EST
[ Parent ]
Generally, I think this train drivers deal is good for the unions, though.

It's really distasteful to read all the concern in the press at a time when on average the wage rise in Germany is still below productivity gains + inflation.

by nanne (zwaerdenmaecker@gmail.com) on Tue Jan 15th, 2008 at 05:34:55 AM EST
[ Parent ]
I agree that it's rather unseemly watching business leaders bemoan the decline of collective bargaining after they spent most of the 90s undermining it. Still, there is a solid labor-oriented argument for the system. Labor leaders in Germany have been quite openly ambivalent during the train drivers strike.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Tue Jan 15th, 2008 at 06:30:07 AM EST
[ Parent ]
6000 euros a month? And they are complaining?!

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Tue Jan 15th, 2008 at 05:27:02 AM EST
[ Parent ]
LOL! The 1500 Euros is per month. Sorry I was unclear, I'm used to always expressing salary as per month and always expressing working hours per week.

I forget that this is an international community sometimes!

by nanne (zwaerdenmaecker@gmail.com) on Tue Jan 15th, 2008 at 05:31:28 AM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Occasional Series