Amid ongoing collective bargaining disputes-including at Deutsche Bahn and within the public sector-the German Institute for Economic Research (DIW) proposes an alternative benchmark for evaluating wage increases.
DIW chief Marcel Fratzscher told the Redaktionsnetzwerk Deutschland that the current debate over higher salaries consistently neglects productivity. “If workers can demonstrate that they actually produce four percent more in their working hours each year, I find it perfectly legitimate for wages to rise by the same amount” he explained.

Fratzscher argues that workers possess strong bargaining power. There are three million unemployed individuals but also 1.6 million open job vacancies, giving employees a favorable position. “At least those covered by collective agreements and trade unions-roughly half of all workers-have a solid footing” he added.