In this featured article from Scientific American, Stefan Theil, Newsweek’s Berlin Bureau Chief and regular AICGS contributor, examines how Germany is able to maintain a strong manufacturing sector, and thus a relatively strong economy despite ongoing struggles in Europe. View the full article here This content is generously provided to AICGS by Scientific American.
Throughout Germany’s handling of the euro zone crisis, much has been made of its strong economy – particularly in the manufacturing sector – as an example for the less economically stable countries to follow. However, as Dr. Stephen Silvia points out, Germany’s success in high-wage manufacturing jobs may not be all it is cracked up to be.
This week, Volkswagen (VW) announced wage increases for over 100,000 workers in six of its plants in western Germany. Representatives of IG Metall and upper management of VW reached this agreement in a second round of deliberations on Thursday. In addition to the 4.3% annual wage increase, the company agreed to the… Read more >