IG Metall - A Trade Union in Crisis?
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The agreement would also influence inflation and price stability in the German economy, and have repercussions on the wider European economy. Earlier, the European Central Bank7 (ECB) president, Jean-Claude Trichet, warned German companies against allowing any pay increase. He said that if the pay demand was met, the ECB would be forced to raise interest rates to counter inflation.
The achievements and accusations present a contrasting and interesting picture of a trade union in a changing business environment.
In 1891, Deutsche Metallarbeiter Verband (DMV) or German Metalworkers'
Federation was founded to protect the interests of metal industry workers in
Germany. DMV was the forerunner of IG Metall. DMV believed in the principle of
'one union for one industry', i.e., only one union should represent the
interests of the workers of a particular industry.
7] The European Central Bank is one of the world's
largest central banks, in charge of fiscal and monetary policy for the European
Union's official currency, the Euro. The ECB was established on June 1, 1998 and
headquartered in Frankfurt, Germany.
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