Commentary: Germany: Coddling Labor Is No Way To Create Jobs

Workers at DaimlerChrysler and Ford Motor Co. are staging daily warning strikes of two hours or more. At engineering outfits around the country, employees have been walking off the job and taking to the streets in protest rallies. After two years of peace, labor confrontation is once again heating up in Germany, as the country's strongest union, IG Metall, digs in its heels over its demand for a 6.5% pay increase this year. The employers' federation for metalworkers, Gesamtmetall, has grudgingly countered with an offer of 2.3% plus 0.5% based on companies' profitability. If the employers don't up their offer by Feb. 11, IG Metall pledges to hold a vote for an all-out, national strike.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.