Labor disputes and wage projections in Germany and Greece

In Germany, approximately 3.7 million workers in the mechanical engineering industry have launched warning strikes to demand a 5% wage increase over 12 months. The union IG Metall rejected an employer proposal involving a one-time payment of 1% of annual gross earnings in 2027 and a 1.3% increase in 2028, labeling it a “minus offer” that effectively reduces real wages. Initial strikes occurred at the Thyssenkrupp Rasselstein plant, with further actions expected across Hesse, Rhineland-Palatinate, Saarland, and Thuringia.

In Greece, three mechanisms are projected to influence worker earnings by 2027. These include a planned increase in the minimum wage, a 0.5 percentage point reduction in social security contributions for employees, and the implementation of wage maturity increments. While the exact new minimum wage is pending official consultation, market scenarios suggest a range between 960 and 970 euros gross. The Greek government has set a target for the minimum wage to reach 1,000 euros by January 2028.