Just when Germany thinks they are coming out or have come out of recession this is what they do. Well to be more accurate they did it in June:
"At the past weekend collective bargaining between employers (ZDB) and unions (IG Bau) in the German construction industry came to an end which was reached through conciliation. According to the agreement reached, wages and salaries of the about 700,000 employees in the German construction industry are to be raised by 2.3% as of June 1st 2009 and by another 2.3% from April 1st in 2010. For May 2009 employees will receive a single additional payment of 60 Euros. The new collective wage agreement will be valid for 24 months. "
This is summed up as follows (I'm led to believe?):
Minimum wage goes up (this must be the construction industry minimum wage) in 10c increments in the period 9/2009 to 9/2010 getting to €11 / hr. Note that this is for the West of the country only, they are still on lower incomes in the east and even have lower wage agreements, same worker in the eastern part gets increased from €9 to €9.25 in 9/2009 rising to a max level of €9.75 in 9/2010.
Now in 2008 Reuters reported that a deal was struck where the 700,000 workers had agreed on €10.70 / hr as the minimum from €10.40. The workers / unions must have got this deal last year and went dipping into the pot for more? Well it appears if they have this has worked.
Now lets compare this to our situation. Tom Parlon was heckled and abused by workers last February when he tried to talk to the unions about a a pay freeze, thus quelling the pending 3.5% increase in the national wage agreement.
"At the past weekend collective bargaining between employers (ZDB) and unions (IG Bau) in the German construction industry came to an end which was reached through conciliation. According to the agreement reached, wages and salaries of the about 700,000 employees in the German construction industry are to be raised by 2.3% as of June 1st 2009 and by another 2.3% from April 1st in 2010. For May 2009 employees will receive a single additional payment of 60 Euros. The new collective wage agreement will be valid for 24 months. "
This is summed up as follows (I'm led to believe?):
Minimum wage goes up (this must be the construction industry minimum wage) in 10c increments in the period 9/2009 to 9/2010 getting to €11 / hr. Note that this is for the West of the country only, they are still on lower incomes in the east and even have lower wage agreements, same worker in the eastern part gets increased from €9 to €9.25 in 9/2009 rising to a max level of €9.75 in 9/2010.
Now in 2008 Reuters reported that a deal was struck where the 700,000 workers had agreed on €10.70 / hr as the minimum from €10.40. The workers / unions must have got this deal last year and went dipping into the pot for more? Well it appears if they have this has worked.
Now lets compare this to our situation. Tom Parlon was heckled and abused by workers last February when he tried to talk to the unions about a a pay freeze, thus quelling the pending 3.5% increase in the national wage agreement.
His argument that this pay freeze or even a pay cut would create 55,000 more jobs in our industry. The figure of 55,000 may be slightly exaggerated, but he is certainly right about some increase in employment.
The current minimum wage for non-skilled workers in Ireland is a staggering €14.88 per hour and goes up to €18.04, so a construction operative Grade 'A' is at €18.04 / hour, basic, excludes overtime. Add in country money to this and work out employer on-costs and the cost for a labourer per hour would be over €30 or circa €1650 / week.
Is it any wonder the German lads sought an increase.
The current minimum wage for non-skilled workers in Ireland is a staggering €14.88 per hour and goes up to €18.04, so a construction operative Grade 'A' is at €18.04 / hour, basic, excludes overtime. Add in country money to this and work out employer on-costs and the cost for a labourer per hour would be over €30 or circa €1650 / week.
Is it any wonder the German lads sought an increase.
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