WEST GERMAN EMPLOYMENT DATA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001900030012-2
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 13
• Document Creation Date: December 19, 2016
• Document Release Date: August 17, 2005
• Sequence Number: 12
• Publication Date: July 8, 1974
• Content Type: MF

M 91APprove
12/14 'A ~3oo MrI:OYM NT QATA
 UNCLASSIPFD
CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
.
cIA I>q- s -
$ July 074
MEMORANDUM FOR: Mr. Milton Tulkoff
OS D/PANE
Department of Defense
SUBJECT : West German Employment Data
Attached is the information you requested to
supplement labor force data forwarded to you by our
office on 20 June.
may contact me
Chie
Western Europe Branch
Industrial Nations Division
Office of Economic Research
STAT
Attachment: a/s
July 1974
A ppiu a -FOr"?Reles a 2GGS#42i44 CIA-R P85-T BZ5RO 19~00A3Qd122
If you have further questions, you
STAT
 FES)
TAT
BERLIN, Lit; MEN, DUESSELDORF, FRANKFURT, ITA BURG,
MUNICII, S!'UTTGART, GENEVA, EC BRUSSELS, NATO
BRUSSELS, CrUSSELS, COPENHAGEN, DUBLIN, THE HAGUE,
HELSINi:I, LONDON, LUXEMBOURG, OSLO, ROME.,
AmEmba say BONN ----PATE: JUNE 3 a 1974
5'2.: N/A,,-
AB CW ell I J___
YV~
Recent Collective'Bargai ing'and Wage Develop
During the f irct cuarter of 1974 more than 10 million
blue and white-coilar workers in the public services,
railroads, post-=i . ervices, metal manufacturing, con-
struction, printing, chemical, textile and coal in-
dustries and retail trade obtained pay increases
averaging 11-14 percent through union negotiated con-
tracts -which ravorod workers in the lower income
brackets.. The r:ost significant change in working con-
ditions, a. result of a long strike by Bremen metal
workers,. provide- new employment security for older
workers between the ages of 55 and 65. Wage demands
reflected a more ;Militant attitude by union leaders
who ignored repeated warnings by the Government, Bun-
desbank, economic experts and management associations
that wage incr.L asps exceeding 10 percent would not
only generate new 'inflationary pressure, but would
also endanger. jobs. Following the pattern-setting
union negotiated ::age breakthrough in the public services
and subsequent s ttlements in major private industries,
the Federal Gov: *_?nment, was forced to revise its economic
projections for 1974, It.nowi estimates aggregate
Approved For Release 2005/12/14:CIA=RDP85T00875R001900030012-2
...+r. Y~w.,+.r..u..u..r..war.rM_.,
Oi:f'AR I`?!}:;; OF SPATE
 earnings per employee in 1974 will be 12-13 percent higher
than in 1973, compared with original projections of an
8.5-9.5 percent: increast! as of the late fall of 1973. t3y
the end of June the unions expect the renegotiation of wage
agreements with similar results for another more than 2
million employees in the clothing, part of the chemical in-.
dustries, private banking and insurance. According to
Government estimates, labor costs per unit rose at a seasonally
adjusted annual rate of 13.6 percent in the fourth quarter of
1973. END SUMMARY.
Bargaining Settlements
On February 13, the Government and the DGB Public Service
Workers Union agreed on a compromise pay increase of 11 per-
cent or a minimum of DM 170 per month retroactive to January 1,
and valid for one year. The Government commented that con-
sent for the agreement was given "only with the most serious
misgivings," while Public Service Workers Union President
Kluncker said "we have reached a fair compromise. There were
no winners or losers." Before the talks broke down negotia-
tions had been made extremely difficult by the wide. gap be-
tween the original union demand for a 15 percent pay increase
plus a DM 300 per year leave allowance and a "final" Govern-
ment offer of only 9 percent. The Chancellor and other mem-
bers.of his Cabinet stressed on several occasions that wage
increases of 10 percent or more, were unacceptable for the
Government.
This wage dispute also reflected a more militant stance and.
The minimum increase'resulted in a restructuring of wage and
salary schedules in favor of public service workers in the
leaders.
higher wage demands of the union leadership who wished to avoid
a repetition of last year's wave of. wildcat strikes when young
workers, union militants and leftists rejected union negotiated
contracts and led widcat strikes. The narrow margin by which
the settlements were approved in subsequent referendums showed
worker dissatisfaction with settlements which fell short of the
high expectations raised by the original demands of the union
a result.of the minimum increase and additional heavy work
lower, wage brackets. The Railroad Workers Union estimates that
the pay increase for railroad workers, averaged 14 percent as
 Approved For Release 2005/12
'UNCLASSIFIED Page 3of.
animously agreed on a eonpromiee formula offering less than
the original proposal. The new agreement provides for an
special conciliation procedure, the conciliation board un
on the board providing a 14 percent pay increase. After
a strike and long and difficult negotiations under a new
BONN A- 4'/
Metal Manufacturi.Eg_ Regional wage agreements in the metal
manufacturing i dustry covering;. over 4 million blue and
white-collar workers throughout the FRG and West Berlin were
terminated on December 31, 1973.. while the metal workers union
and the employers' association waited for the outcome of the
wage negotiations in the public services. A settlement was
eventually reached when the parties, as in previous years,
resorted to their voluntary con-ciliation machinery set up
under collective agreements. A comparatively quick settle-
ment was achieved in North Rhi.*.c-Westphalia where both par-
ties accepted a - conciliation proposal largely in line with
the settlement for government c-m,ployees.. This agreement pro-
vides an 11 percent pay increass effective January 1, an
additional 2 percent effective November 1, an increase in
annual leave of two working days; an increase in the annual
leave bonus from 30 to 50 percent of a one-n- nth salary, and
additional adjustments for the lower wage, brackets. The
agreement is valid until December 31, 1974.
The North Rhine-Iestphalia metal agreement did'not have the
immediate effect of a pattern-making settlement for the metal
industry throughout the FRG. A f. ew days earlier a regional
conciliation board for the Bres en metal industry approved a
proposal against the votes of tha nmanage:oant representatives
lized that stalling: would not .improve, their position because
At. the beinningcf the Bremen strike, union leaders in the
other Laender preferred to await the outcome of the Bremen
negotiFf ons before reaching an agreement; hit when they rea-
increase in. the leave. bonus from 30 to 50 percent
11 percent pay increase, retroactive to January 1, to be raised
to 12 percent effective April 1, and. 13 percent effective
July 1, along with new employr:ert security provisions for
older workers age 55 to 65, tr.,o days more annual leave and an
workers in the FRG and West Be_lin. These cgreements were
ments were reached covering about 90 percent of the metal
cut production at the " expense of union stw i.?:e funds, agree-
a strike in. Hesse, Baden-:uertt.:aberg and Bavaria with their
large. automobile, plants would help the autorroh'?? le producers
based . on the settlement in North Rhine-W :akptvalis with cer-
tain modifications in f rireje benefits alloaing for local
conditi,
 Page 4 of
BONN A- ?151
After the settlement in Bremen, agreements following the
Breiu n pattern were concluded in Hamburg, Schleswig -IIolsttein
and Lower Saxony, except at Volkswagen, which settled on the
basis of the North Rhine -Westpha1ian formula.
Othsr Industries: Negotiatiors in the construction industry
reached a settlement behind closed doors without accompany-
ing public debate and without inciting rank and file militants.
The agreement, covering more than 1.3 million workers, in-
cludes an 11.2 percent pay increase, effective May 1 and valid
for one year.
In the printing industry, the parties agreed on a conciliation
proposal granting an 11.3 percent wage increase, effective
April 1 and valid for one year.
Regional wage agreements were renegotiated in retail trade in
Bavaria, Hamburg and North Rhine -VZestphalia with pay increases
averaging 1.2-13 percent.
Collective bargaining negotiations for about 300,000 employees
in private banking are still stalled. The union demands a
10.percent wage increase plus an additional DM 70 per month.
The Banking Employers.' Association advised its member firms
'co grant its employees a "voluntary" 11 percent pay increase
effective March 11. The unions, Commerce, Banking and Insurance
and German Salaried Employees, opposed this "unilateral manage-
ment decision", but apparently are undecided to push harder
by threatening a strike in view of the poor organization and
lack of militancy among banking employees.
A similar situation, affecting about 200,000 employees,. is
ement repre-
mana
e th
h
g
e
er
developing in private insurance, w
sentatives on a conciliation board voted against, a proposal
providing a 12 percent pay increase-or a minimum of DM 165
per month effective April 1, and an additional 2. percent
effective December 1.
The Public Service Workers Union (OeTV) also renegotiated
a a
--
..
a7---------
the FRG providing for an 11-13 percent pay increase, retro-
active to January 1, and valid for ; one ear.
`c?ustry, the union obtained regional settlements in
In collective bargaining negotiations in the chemical
UNCLASSIFIED
 ,Approved For Release 2005/12/14: CIA-RDP85T00875R001900030012-2
UNCLASSL^ 16 'EM Page 5 of
BONN A- RYI
Rhineland-Palatinate, Hesse and Northern Rhineland, provid-
ing for a 12 percent or a certain minimum increase, effec--?
Live April 1, valid for one year. Chemical industry negotia-
tions in the other areas are still going on and will probably
result in similar settlements; perhaps with some minor modi-
fications. Recently, the unions also rer.::gotiated ore-year wage agree-
ments granting raises of 12.1 percent in-hard coal mining
and averaging 12.5 percent in the textile industries., Unions
and employers' associations are still engaged in tough collec-
tive bargaining in the cloth::.-.,.g industry where a settlement
along similar lines is expected.shortly. The major wage round
for 1974 has thus' been. virtually completed.'
Public Services: Public service workers held a'three-day
selective s?i:rike which in its final phase idled over 150,000
employees in public utilities, railroads "and postal services.
Although this strike esealatr-d. gradually into the FRG's largest
postwar public services work stoppage, it involved only about
10 percent of goverru..ien?t employees and was targeted on spe-
cif is areas and sectors. Rcpjrts indicated the selective
'strike actions were effective and without serious incident.
When the.,rcgional metal employers' association rejected a
conciliation proposal, the union called a regional industry-
wide strike i .sing more than 50,000 workers' in the Bremen
metal' manufacturing 1.nc ustry Ci ostly shipyards and electronics,
for almost three weeks. The employers declared their read i-
ness to settle on the basis of the North Rhine-Westphalian
agreement, but the union- leadership, challenged by rank and
file militants, decided to strike in support of the more
favorable regional conciliation proposal which included
employment security for older workers. However, when confronted
with strong management resistance, it accepted the. employers'
offer to activate second instance conciliation machinery. A
new referendum shows:c' that only 32 percent of the strikers acceptc
the proposal, a narvcpW but' su.:f icient !:: rdin for the union
leadership: to call off "he strike since: the union constitution
requires approval of at least 25 percent to ratify an agree-
. ment aster a prece,
Union leaders maintain,. however, that the, strike was a full
success since it en-rib1c.d the i:nion to ccure a pattern setting
protective clause for older wnricurs, agr~ 5S to 65, which had
not. been subj cc t to ne ntiati.ous in * Nor t h Rhine-Westphal is .
 Approved For Release 2005/12/14: Cl
The major increase in negotiated wage rates, which went far
beyond original government projections, will raise average
annual earnings per employee in 1974 12-13 percent over
1973, according to recently revised government estimates.
The latest monthly report of the Federal Economics Ministry
showed average hourly earnings per employee (blue a
d
hi
n
w
tc-
collar) in manufacturing in the fourth quarter of 1973 14 per-
cent over the f
th
our
quarter of 1972. Output per man-hour
increased only 5.5 percent in this period
which mea
,
ns an
8 percent increase in unit labor costs
Cost
ush i
fl
.
p
n
ation
is expected to continue during 1974.
Average gross hourly earnings of production workers in manu-
f
acturing in October 1973 were DM 8 .39, ? an 11.1 percent in-
crease over October 1972. Weekly earnings of production wor-
k
ers-in-October 1973 averaged DM 360, 10.4 percent more than
monthly salaries of white-collar workers in manufacturing,'
c
ommerce, private banking and insurance rose 12.4 percent
f
or males, and 11.6 percent for females.
The consumer price index showed the following rates of in-
crease over the corresponding mnths of the previous year:.
-7
institutes forecast that nominal disposable income will in-
anuary, !.4 percent; February, 7.6 percent;?and March,
7.2 percent. The Federal Government holds that 2.4 per-
centage points of the consumer price index increase are due
to higher prices for mineral oil products.
Future prospects are viewed more pessimistically because of
the inflationary impact of major wage increases negotiated
under recent contract settlements. Economic research in-
stitutes estimate an-average 8.5-9.5 percent increase in the
the introduction of short time and the impact of progressive .
tax ratimn in the ~}.e.e?...... -r i
..u eying
rom the progressive tax rates.
middle class incomes of that year.: Co
ff nsequently, workers
C
are
:price index, growing number of wnrkprc may cv,ffnr 7 r,rr.e~~
 9bQ03001
Q , 1Q87F 0
UNCL7 5ssrl).D Page .7 of
BONN A- SS/
For example, an average in;3uctrial :.vrker earning DM 822 per
in 1965 paid an income 'tax of DM 101, 60 (12.4 percent)
if single, or DM 29,30 (3.6 percent) if married with two
children. However, in Octctior 1973, the same worker earned
DM 1,560 per month but had to pay an income tax of DM 289,20
(18.5 percent) if single, or DM 170 1110.9 percent) if
married with two children.
month
 Approved Fbr Release-2005112/14: CIA- 15 7008 '5RQ(
"Al -
Approve
January.
February
March
April
May
June
July
August
September
October
.November
December
January
February
? March
April
May
256.2
211.5
222.8
WEST GERMANY: WORKERS ON SHORT TIME
(Thousands)
1
17.5 j
16.2
26
3
.
29.7
23.6
.18.0
. 11.2
11.3
36.3
67.8
105.2
161.3
267.9
309.3
 WEST GERMANY: HOURS WORKED PER WEEK BY BLUE COLLAR EMPLOYEES
1970
1971
1972
1973
January
1973
April
1973
July
1973
October
1973
,January
1974
M
F
M
F
M
F
H
F
H
F
M
F
M
F
H
F
H
F
Total Industry
44.8
40.7
43.9
40.5
43.6
40.3
43.5
40.2
43.2
40.2
43.7
40.4
43.7
40.3
43.7
40.1
42.4
39.5
Utilities
44.7
42.2
44.5
42.1
44.0
42.1
'43.0
41.5
42.8
41.5
43.3
41.8
43.0
41.5
42.7
41.3
Mining
42.7
--
41.7
--
40.6
--
41.8
--
42.3
--
41.9
--
41.5
--
41.5
--
Basic 6 Producers
45.2
40.3
44.1
40.0
43.9
39.9
44.1
40.4
43.8
40.4
44.5
40.5
44.4
40.3
44.3
40.4
Goods
Investment Goods
45.1
40.7
44.0
40.0
43.2
40.3
43.5
40.4
43.3
40.1
43.7
40.5
43.4
40.2
43.6
40.5
Consumer Goods
44.3
40.7
44.0
40.4
43.9
40.2
43.5
39.9
43.4
40.0
43.8
40.2
43.5
40.2
43.2
39.3
Food and Food
46.8
42.3
46.6
42.4
46.1
42.0
45.9
41.6
45.0
41.4
45.8
41.6
46.
41.9
46.5
41.9
Processing
Construction
44.7
42.8
44.1
42.5
43.6
41.9
43.1
41.7
41.8
41.2
42.9
41.5
43.
41.7
43.6
.42.7'
8 July 1974
pr ved--For?R&4
:.
 __ Approved For Release 2005%12%14: CIS-RWP8tW7(fiff9Zf666fi2=2 -
.WEST GERMANY: UNEMPLOYMENT*
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
Ju 73
Au 73
Se 73
Oc 73
No 73
De 73
Ja 74
Fe 74
Ma 74
Ap 74
Ma 74
West German
Total
169.1
147.4 -
161.1
459.5
323.5
178.6
148.8
185.1
246.4
273.5
216.6
221.9
219.8
267.0
331.8
485.6
620.0
Baden-
Wurtemberg
Sudbayern I Berlin (West)
0.8
10.0
0.5
11.6
0.7
4.8
6.2
22.8
1.4
25.3
1
3
11
7
1
3
0.7
9.7
0.5
10.8
0.7
4.8
0.2
21.2
1.3
22.5
.
1
2
.
8
1
.
0
9
0.7
11.2
0.6
12.5
0.8
6.5
0.2
20.9
1.3
19.7
.
1
0
.
6
7
.
0
7
2.1
31.9
1.6
42.0
2.8
24.2
0.7
57.7
3.6
43.6
.
2.3
.
14
9
.
1
6
1.5
21.0
1.1
30.8
2.1
13.1
0.4
39.4
2.5
33.7
1.8
.
8
9
.
1
2
0.9
11.6
0.6
16.4
1.1
7.2
0.2
20.8
1.3
21.3
1
1
.
4
5
.
0
6
0.7
10.8
0.5
13.6
0.9
8.1
0.2
17.6
1.0
19.3
.
1
0
.
0
.
0
6
0.8
14.2
0.7
15,.1
t.0
13.1
0.4
21.1
1.3
22.1
.
1
1
.
7
4
.
0
8
1.1
19.6
1.0
18.7
1.2
15.6
0.5
22.4
1.4
24.0
.
1
2
.
10
8
.
1
2
1.2
20.9
1.0
21.2
1.4
18.3
0.5
22.6
1.4
29.0
.
1
4
.
10
0
.
1
2
1.0
1
17.6
0.9
16.9
1.1
14.7
0.4
13.1
0.8
17.0
.
0.8
.
7
9
.
0
9
.0
18.5
0.9
17_1
1.1
15.6
0.5
13.8
0.8
18.9
0
9
.
4
7
.
9
0
1.0
18.2
1
0.9
16.9
1.1
16.1
0.5
13.4
0.8
18.3
.
0
9
.
7.0
.
0
8
1.2
21.
-
1.0
20.8
1.3
20.6
0.6
16.4
1.0
23.0
.
1.1
8.6
.
1
0
1.5
25.0
1.2
26.5
1.7
24.8
0.7
22.3
1.3
32.5
1.6
11
2
.
1
3
202
2.9
34.6
1.7
41.0
2.6
34.5
1.0
45.8
2.8
58.8
2.8
.
16.3
.
1.9
620.0 2.9
562.0 2.7
517.0 2.4
457.0 2.1
*Monthly data are not seasonally adjusted.
CIA/OER
8July 1974
 Approve or t~'Sr~t?@8r~B
WEST GERMANY: WAGES OF BLUE COLLAR EMPLOYEES
(Marks Per Hour)
1971
F M F
Utilities
Mining
Basic & Producers
Goods
Investment Goods
Consumer Goods
Food and Food
Processing
Construction
January
1973
April
1973
BI F
July
1973
M
F
r
4.49
7.25
5.05
- 7.89
8.76 6.16
8.37
8.61
6.02
78. 89
6.26
4.85.
7.79
5.63
8.72
9.62 6.84
9.06
9.55
6.79
9.81
6.93
6.
--
7.26
--
7.84
8.64
8.12
8.25
--
8.83
6.69
4.85
7.38
5.42
7.98
8.87 6.55
8.43
8 774
6.28
9.02
6.48
7.29
7.92
5.77
8.80 6.40
8.49
6.15
8.75 1
6.36
8.88
6.14
6.83
7.47
5.33
8.33 5.96
7.86
5.61
8.18
5.76
8.47
5.88
6.63
4.99
8.08 5.51
7.58
5.18
7.89
5.39
8.15
6.67
8.61
5.97
9.11-
6.51 '
8 July 1974
October
1973
M
8.93
77
9.74
8.95
6.30
6.98.
9.00 16.75
8.88
8.52
8.35
6.49
6.12
5.67
9.25