Offensive Wage Policy for Employees

This page delves into the concept of offensive wage policy from the perspective of employees, highlighting their demands and the potential economic impacts of wage increases.

The core of an offensive wage policy is the demand for wage increases that at least match the combined growth of labor productivity and current inflation rates. This approach aims to maintain workers' purchasing power and ensure they benefit from economic growth.

Definition: Produktivitätsorientierte Lohnpolitik (Productivity-oriented wage policy) is a strategy where wage increases are tied to productivity growth and inflation rates.

Employees pursuing this policy typically have the following objectives:

1. Achieve a higher wage share (proportion of national income going to wages)
2. Increase production and employment through expansive effects
3. Maintain or improve workers' standard of living

Highlight: The goal of a higher wage share reflects the desire for workers to receive a fair portion of the economic value they create.

The document suggests that increased wages can have positive economic effects:

Example: Higher wages can lead to increased production and employment, as workers have more purchasing power to drive demand for goods and services.

However, this approach is not without potential drawbacks:

Vocabulary: Expansive Lohnpolitik (Expansive wage policy) refers to a strategy of aggressively pushing for wage increases beyond productivity growth, which can have both positive and negative economic consequences.

The illustration on the page shows the relationship between various economic factors, including production, employment, and wage levels, demonstrating the complex interplay of these elements in wage policy decisions.

Quote: "Der Anstieg der durchschnittlichen Nominalhöhe soll zumindest Zuwachsrate der AP + aktuelle Inflationsrate ausgleichen" (The increase in average nominal wages should at least offset the growth rate of labor productivity plus the current inflation rate)

This quote encapsulates the core principle of the offensive wage policy strategy, aiming to ensure that workers' wages keep pace with both economic growth and the cost of living.