By Michael Nienaber

BERLIN (Reuters – German workers in construction said Wednesday that they would strike to demand higher wages. This is increasing the pressure on employers to meet a variety of demands, including compensation for lengthy commutes to work.

Robert Feiger of the IG Bau labor union stated to the Sueddeutsche Zeitung that a nationwide strike in construction was more probable than in any other 20-year period. This statement came before the arbitration began.

Berlin saw hundreds of people marching in Berlin with their kettledrums and trumpets, expressing their desire for more profits from the construction boom which has supported Europe’s biggest economy.

According to the labour union, a 5.3% wage rise is needed for almost 900,000. Also, tariffs should be aligned in Eastern and Western Germany for more than thirty years.

Union members want employers to offer higher travel reimbursements for their workers who drive to remote construction sites.

This is a major obstacle to negotiations even though the demand was on the table since 2018, Feiger stated.

Feiger stated that “without the employers truly giving in to our demands, we will not be able to reach an agreement this time.”

Rainer Schlegel is the head of the Federal Social Court’s arbitration on the wage conflict. It has been ongoing since May.

Germany will strike its first national construction sector strike since 2002 if Schlegel fails to find a solution that both employers and employees can agree on.

Feiger added, “And trust me: We are skilled at striking.”

The European Central Bank closely monitors inflation expectations and wage development in both the euro area and Germany. Germany is the largest economy of the bloc.

Economists look for indicators that rising inflation expectations could lead to wage hikes, which would trigger a wage spiral. This is a condition for long-term inflation.

The Federal Statistics Office data showed that wages in Germany rose 5.5% over the previous quarter. This was more than the consumer price inflation of 2.4%.

Workers saw a 33% real wage rise in the three-month period April through June.

However, in the second-half of this year economists anticipate that annual consumer price inflation will exceed the average wage growth, which would decrease consumers’ spending power.

Germany’s 16 Federal States and the German Labour Unions are set to begin negotiations Friday on a higher wage for over 2.3 million workers in public service.

For a 12-month period, labour unions want a 5% increase in pay. In order to support those with low incomes, the unions want the wage agreement guaranteeing a minimum of 150 Euro per month in pay increases.

The unions are asking for a minimum 300 euro per month pay increase for public-health care workers, who were especially stressed during the COVID-19 pandemic.