Such wage gains could boost an already strong German economy by increasing consumer spending. The deal involves the possibility of more flexible working hours, a contentious issue in a strong economy with some firms running at full capacity and facing shortages of skilled workers in some areas. Employees won the right to the shorter week while employers will be able to put more workers than before on longer 40-hour weeks. Wage increases could have a broader impact if they spread to other sectors and countries and push inflation higher across the eurozone. The contractual week is 35 hours in western Germany and 38 hours in the eastern regions.

Source: ABC News February 06, 2018 08:28 UTC