Record inflation: Scholz's proposal meets with opposition from unions

Created: 2022-06-27Updated: 2022-06-27 10:31 p.m

By: Lucas Maier

The prices are higher than ever.

Politicians are demanding solutions, but a first suggestion by Olaf Scholz caused outrage.

Frankfurt - Inflation has reached a peak in Germany.

Food, gas and petrol prices are also at historic highs because of the war in Ukraine.

In order to relieve employees, Chancellor Olaf Scholz (SPD) proposes a one-time payment from employers, as various news agencies report.

It should all be tax free.

In return, the politician from the SPD, the party that has always taken up the cause of standing up for workers, wants to persuade trade unions to renounce collective bargaining.

There is now resistance to this move.

From the ranks of the trade unions verdi, IG Metall and GdP, there are objections as well as suggestions.

Olaf Scholz (SPD): IG Metall contradicts the Chancellor

The largest trade union in Germany, IG Metall, has over two million members.

It is also the largest employee representative body in the world.

They represent 3.8 million employees in collective bargaining for the metal and electrical industry.

The union rejects Scholz's initiative, as reported by the dpa.

Collective bargaining is not conducted in the Chancellery.

It is not politics that decides on the goals of our collective bargaining policy, but rather the collective bargaining commissions and committees of IG Metall.

Jörg Hofmann - First Chairman of IG Metall

As a counter-proposal to Olaf Scholz's (SPD) idea, Hofmann advocated skimming off speculative profits.

He also appealed for further relief steps that could help citizens to cope with the current rise in prices.

Collective bargaining for IG Metall will start in September 2022.

The declared goal is a strong increase in the permanent wage tables.

High prices: Olaf Scholz's proposal was not well received by Ver.di either

Olaf Scholz didn't get any credit for his suggestion from the Ver.di service union either.

"One-off payments don't get us anywhere," said Chairman Frank Werneke on Monday (June 27) to Bayern 2. In the union's own publication, Ver.di spoke to Michaela Schröder from the consumer advice center about the current price situation.

Proposal for relief: Olaf Scholz (SPD) offends the unions.

(Archive image) © Christoph Hardt/IMAGO

In the interview, Schröder pleaded for further relief, her proposal: an end to VAT on fruit, vegetables and legumes.

As a further measure, she proposes increasing the heating cost subsidy.

From the current 300 euros, this should be raised to 1000 euros, according to the demands of the Verbraucherzentrale eV.

Police union: Olaf Scholz should improve

Even the police union (GdP) joins the canon of criticism of the unions.

"This is not sustainable help.

Life will also become more expensive in the coming months," said René Klemmer, deputy GdP federal chairman, on Monday (June 27) about Scholz's proposal.

Criticism also came from the Bundestag, namely from the parliamentary group of the Left Party: "Instead of brazenly interfering in free collective bargaining, Olaf Scholz should rather ensure that the federal government amends its hitherto obviously insufficient relief packages," says the member of the Bundestag Pascal Meiser out.

The coalition is more forgiving: "Olaf Scholz made a proposal"

The tones from the ranks of the coalition partner are far more forgiving.

Green leader Ricarda Lang said: "Olaf Scholz has now gone ahead and made a proposal.

I think it's exciting, we'll take a look at it."

She warned of an outbidding competition between the traffic light parties.

How the federal government will ultimately deal with the current situation and whether the one-off payment will come will emerge in the coming weeks.

(Lucas Maier with dpa)