German union boss calls for stable real wages amid high inflation

The head of the German Trade Union Confederation (DGB), Yasmin Fahimi, has called for "a stabilization of real wages" ahead of a meeting of key figures in German industry and politicians on Thursday, reported dpa.

The idea of the state making one-off payments to certain workers was the right approach, the DGB leader told public broadcaster ARD. A bonus of up to €3,000 ($3,000) is set to be paid to health-care workers as part of a government package agreed earlier this year.

However, the level of wages must also respond to high inflation, she said. In August, annual inflation hit 7.9% in Europe's largest economy.

The fast-rising cost of goods means that monthly salaries are effectively worth less because workers can no longer buy the same amount of products and services as a year ago.

Chancellor Olaf Scholz is meeting representatives of business associations and trade unions on Thursday for the second session of a forum aimed at identifying joint action to combat an economic downturn and high inflation.