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Strikes loom in Germany as talks collapse (HOLD MEIN BIER, THE CHAOS)
The Financial Times ^ | December 20, 2002 | Hugh Williamson

Posted on 12/19/2002 5:17:09 PM PST by MadIvan

Germany edged closer to costly public sector strikes in the new year on Thursday following the collapse of negotiations over wages for 2.9m workers.

The services industry union Verdi broke off talks early yesterday after rejecting an employers' offer of staggered wage increases of 0.9 per cent and 1.2 per cent spread over 20 months starting on January 1.

The union had demanded a wage rise of more than 3 per cent and parity of public sector wages in eastern and western Germany by 2007.

The failure of the talks creates additional problems for the government of Chancellor Gerhard Schröder, which already faces budgetary problems in 2003. Economists said an extended public sector strike would deal a serious blow to Germany's already weak economy.

Otto Schily, interior minister and chief government negotiator, said a 3 per cent increase would cost €6bn ($6.16bn) and would lead to job cuts.

Speaking after emerging from 13 hours of talks in the western city of Kassel, Frank Bsirske, head of Verdi, dismissed the offer as "a provocation", adding: "The employers have created the conditions for a conflict and a conflict is what they'll get."

Mr Schily criticised the union as inflexible, arguing that it "had paid too little attention to the difficult state of public finances".

The wage dispute will enter an arbitration process, which is expected to start on December 28.

This process, in which two independent mediators draw up a draft settlement based on negotiations with both parties, will last until mid-January. No strikes are allowed during this period. If Verdi rejects the settlement, a union ballot could lead to full-scale public sector strikes - the first in Germany since 1992.

The final outcome of the dispute will much depend on the stance taken by Mr Bsirske, the 50-year-old former local government official who has headed Verdi since its formation last year through the merger of five separate unions.

He is under pressure from union members to achieve a large pay rise, after public workers settled for what was later seen by many members as a compromise deal in the previous negotiations in 2000.

The agreement, which contained two wage increases, of 2.0 per cent and 2.4 per cent, led indirectly to Mr Bsirske's election to his current post.

Analysts said the Verdi chief might also be attracted to strike action as a means of forging greater unity within Verdi, which has a membership ranging from refuse collectors to computer specialists.

Despite this, a strike is by no means inevitable; the previous three public-sector pay settlements, in 1996, 1998 and 2000, were achieved via the arbitration process.

Thursday's employer offer included wage parity across Germany at an unspecified date, but also a half-hour increase in weekly working hours to 39 hours in western Germany.


TOPICS: Business/Economy; Extended News; Foreign Affairs; Germany; Government; United Kingdom
KEYWORDS: chaos; fischer; germany; greens; schroeder; socialism; spd; unions
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Looks like it is going to be a long, cold winter in Germany.

Regards, Ivan


1 posted on 12/19/2002 5:17:09 PM PST by MadIvan
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To: Delmarksman; Sparta; Toirdhealbheach Beucail; TopQuark; TexKat; Iowa Granny; vbmoneyspender; ...
Bump!
2 posted on 12/19/2002 5:17:22 PM PST by MadIvan
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To: MadIvan
Thanks, Ivan. Always a good post.
3 posted on 12/19/2002 6:57:27 PM PST by fightinJAG
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To: MadIvan
The dolts are tracking Argentina's descent into socialist hell. The trouble is that the dolts never take responsibility for their own problems. Who will they blame this time?
4 posted on 12/19/2002 7:46:54 PM PST by Righty1
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To: MadIvan
I'm an American:

what is the Interior Minister's portfolio?
5 posted on 12/19/2002 8:19:28 PM PST by reformedliberal
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To: MadIvan
Germany is fast becoming the joke of Eurarabia.
6 posted on 12/19/2002 8:23:12 PM PST by Sparta
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To: MadIvan

Doin' the Schröder Strut.

7 posted on 12/19/2002 8:34:42 PM PST by struwwelpeter
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To: Righty1
The amazing thing, because I live here as an American, is that most Germans don't grasp the whole implication. The average German sits down at night, eats dinner, watches the news at 8:00, and just says so what...

I think they will all wake in January when the major strikes occur and start trying to figure out who to blame. If you disrupt the airlines greatly, then all of the buyers of German items...don't come into the country. If you disrupt the train system, then the mail doesn't move around the country, and various major companies start to be effected. Germans at large, have no understanding of their economy. Schroeder is the chief idiot...who understands almost nothing about business and the implications of a bad economy. They deserve what they are going to get.
8 posted on 12/20/2002 10:47:36 AM PST by pepsionice
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To: MadIvan
The problem in such a heavily-unionized area is twofold - first you can't fire anybody, and second, because of that small adjustments in the economy are difficult to make. Hence things fester until big adjustments are necessary, and I can see that coming down the line like a 100-car express train. The very last thing the EU was expecting as recently as two years ago was that Germany would be a net drain on the collective economy instead of a net contributor. This wasn't in the script.
9 posted on 12/20/2002 11:02:22 AM PST by Billthedrill
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Comment #10 Removed by Moderator

To: Kesha
No, I'm just not old enough to have photographed the other batch of goose-stepping krauts.
11 posted on 12/20/2002 2:37:41 PM PST by struwwelpeter
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To: MadIvan
Get Ready for "Weimar Part Zwei"
12 posted on 12/20/2002 2:40:32 PM PST by dfwgator
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Comment #13 Removed by Moderator

Comment #14 Removed by Moderator

Comment #15 Removed by Moderator

To: Kesha
Dass meine ich auch - aber, unser Reich wird die ganze Welt uebernehmen...

Hier in den Vereinigten Staaten, mussen wir Taeglich gegen Socialismus kaempfen...genausowie in Deutschland.

16 posted on 12/20/2002 3:42:34 PM PST by patton
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To: Kesha
I have no problem with you showing some patriotism(which is lacking among most Germans). Many Germans for not signing the Kyoto treaty, by the way, I have read it, have you? is a treaty rejected by our senate 99 to 0, because it would have let america pay for the rest of the world like so many times before. For instance, it would have restricted our businesses from development while countries like China, India , russia etc. would have been excempt ftom the pollution standards. We are doing a lot against pollution on our own without trying to destroy our infrastructure. We, for instance had catalytic converters 20 years before Germany's TUV ever allowed them in German cars.
Yes, there is a growing Anti Americanism in Germany.It is the "Dolce Vita" of the 60's and seveties that is now destroying your country as well as most of western europe. The Europeans have become too lazy to breed, Their population is declining and causing a miriad of social upheaval.
1. You will not be able to pay for the pomised social
Pensions. There are too many old people around and not
enough workers to take their place. Enter the only
people who still procreate, the Muslims. Welcome to
Eurabia, but that is another problem........
2. Your social medical system is totally broke.
3. Raising taxes like your socialist government is
advocating is counterproductive, since it will further
stifle economic growth and bring higher unemployment.
Every 1. year economics student could answer that
one, except in a socialist government.
4. We have been paying for your country's defense for
over 50 years, all we received was a stab in the
back.
5. No one wants war, but freedom is not always free.
6. Just like War is never the only option, gabbing is
not either. Just like Reagan negotiated from strength
to bring down the soviet empire and Peace to Europe,
bring down the Berlin wall, Bush is negotiating from
strength instead of weakness. You cannot negotiate
from weakness with madmen. During Reagans tenure
you almost soiled your pants because he was so tough
with the Soviet Union. Oh well, the Germans were never
good playing poker anyway.
7. The German productivity is 30% behind that of america
and the gap is widening.
I would love to see our military removed entirely from your country. Even though it would cost you more money than you have. I would love to see our soldiers spend their money here in the U.S. I would love to spend my Tax dollars defending my own country instead of other countries. This is a sentiment that is gaining momentum over here. Just imagine, Germany would have to spend their own money on defense, what a noble thought.
Since we have had to be intertwined with Germany for so many years and at a tremendous cost, it seems that we do have a right to voice our opinions.

I speak German fluently, go to your country 4 times a year. I see the problems you are having. Unfortunately, the future is grim. You will be ruled by Muslims within 2 generations. Just pray that Shariah isn't implemented.
There is an American proverb: "Actions speak louder than words." Words are the only thing your government is interested in. Then they call it Diplomacy based on empty promises like your bankrupt social system.
17 posted on 12/20/2002 3:51:16 PM PST by americanbychoice
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Comment #18 Removed by Moderator

To: Kesha
Hast Du das selbst erfunden? it's a lttle silly. Learn something about our way of government please We have a a representatve republic. We don't have a monarchy.
Who gave you the right to claim moral superiority?
I am retired, yes we do have that in the U.S. I lived in Germany for 16 years as European Director for my Company.
I do understand how Germans think. The "good life" of the 60's and 70's is catching up with Europe. While the introduction of "Kindergeld" was a warning shot for the Europeans to start reproducing, they just became too lazy to breed. It is now the largest problem confronting Europe.
The problems are going to compound. In 2050 the Europeans will have delined by 35% due to the low birthrate. Even Russia, with a population of 114 million is going to be reduced to 79 million. The U.S. with a present population will grow to 500 million by that time. Enter the Muslims, the only ones reproducing at a high rate.
Thus, the term "Eurasia" is a realistic possibilty.
Sorry to disappoint you that I don't have a rosier picture for you. But remember, what you do now determines the future.
By the way, those numbers come from your beloved UN :)
19 posted on 12/20/2002 4:20:25 PM PST by americanbychoice
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To: Kesha
Wow a peacenick rant...

Unbelievable...

You are welcome for the USA protecting your butts during the cold war...

Hope you are welcoming the Muslim invasion...
20 posted on 12/20/2002 4:30:09 PM PST by rohry
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