German Public-Sector Staff Want Pay Boost Despite Economic Woes.

German public-sector workers, represented by the Verdi union, are not willing to lower their pay demands despite the country's economic contraction. Verdi union chief Frank Werneke stated that the current economic weakness is not due to high wages but rather an overreliance on certain export markets. The union will announce the size of the pay increase they are seeking for 2.5 million workers at the federal and municipal level. These negotiations come at a time when Germany's economy is expected to shrink for the second consecutive year, and industrial firms are facing challenges both domestically and abroad. Workers in the manufacturing sector are demanding a 7% pay hike, which employers consider unrealistic given the current economic environment. The negotiations will also address working hours, as long hours are seen as a disadvantage for the public sector in attracting staff. These wage negotiations are significant for the European Central Bank's goal of achieving sustainable price growth. [Extracted from the article]