Trade association recommends non-tariff increases to companies | Free press

by time news

2023-09-18 20:09:48

Collective bargaining in retail has made little progress for months. This is also due to the difficult economic situation of companies. Now the trade association is rushing forward with a one-sided recommendation – from the union’s point of view a provocation.

Berlin.

The Verdi union and employers are fighting for more money for millions of retail workers – but the regional negotiations in the 16 federal states have made little progress for months.

The German Trade Association (HDE) has therefore now recommended that companies nationwide increase wages before an official collective bargaining agreement is reached. The HDE in Berlin announced that it is not foreseeable that the collective bargaining negotiations will reach a solution in a timely manner.

“Voluntary creditable advance increases”

According to a decision by the HDE collective bargaining committee, companies bound by collective bargaining agreements now have the opportunity to pay out “voluntary, creditable advance increases of 5.3 percent” from October 1st at the earliest, it said. “Companies can implement this advance increase, which includes collectively agreed wages, salaries and trainee remuneration, in all retail tariff areas from October 2023.”

The HDE also announced that the increases could ultimately be offset against the collective agreements. Such a step remains voluntary for companies. “There is no obligation for companies to implement this exactly and in full. It is only obligatory in terms of its upper limit.” The association is committed to finding a solution to the collective bargaining dispute. Negotiations should continue anyway.

The Rewe Group was the first company to announce that it would act accordingly and increase the wages and salaries of its own employees in Germany by 5.3 percent per month from October. In wholesale – where Rewe is also active and where new tariffs are also being negotiated – Rewe employees should then receive 5.1 percent more money.

Verdi: “Slap in the face for retail workers”

With the recommendation, the HDE as a federal association is intervening in a conflict that is actually a matter for the respective tariff regions. Verdi only commented on the recommended level of 5.3 percent: Such an increase in the current year would be “a slap in the face for employees in retail,” said Verdi boss Frank Werneke. “That’s 92 cents an hour for a saleswoman, and that means a loss of real wages. The employees already receive very low wages, and the inflation of the last few months is eating up wages even further.”

The union is demanding, among other things, at least 2.50 euros more per hour in retail in all regions and a term of 12 months. Depending on the federal state, there are additional requirements. In Berlin and Brandenburg, for example, the union wants to achieve an equalization of collective bargaining periods. Traditionally, collective agreements in the two federal states expire later than in the rest of the republic. The offers from employers vary significantly depending on the region.

Continuing consumer reluctance to consume

The negotiations are made particularly difficult by the tense economic situation in the industry. After retail had already suffered heavy losses during the Corona pandemic, it is now struggling with consumers’ continued reluctance to spend in the wake of the Russian attack on Ukraine and the associated price increases. In the retail sector as a whole, price-adjusted sales in July were more than two percent below the same month last year.

From the employer’s point of view, a wage increase of 5.3 percent is a big step that pushes companies to their limits. Verdi, in turn, refers to the situation of the employees. “But they need income increases that will ensure their existence, with which they can support their lives. They must be able to do something to counteract the extremely increased prices,” says the union.

For weeks, Verdi has been calling for warning strikes in the regions, sometimes lasting several days. As a rule, however, these do not result in supermarkets and shops having to close. It may take a little longer at the checkout on the relevant days. (dpa)

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