Austrian labor unions gear up to fight the [highly profitable] companies

[Insula Dei]

It's not the moment for asking for a salary increase.

Well, we are not Greece.

Austria's economy is growing by 4% this year, so are the profits of the companies. The inflation is also at about 3.5%.

Therefore it is only normal that the steel workers (and others) get at least a 4.5% pay rise.

The employers representatives demand that wages should only rise by 3% this year is ridiculous because it would mean a net wage loss because of the inflation.

It's good that the unions are turning up the heat on the capitalists. It's good for the middle-class.

If salaries should be increased according to GDP (a thing that the forces of the market would correct  without any policies a year later), when you have a recession you decrease salaries? That's nonsense.

No, they should be raised according to Inflation. Which means you can allow wages to freeze in a period of deflation.

[Insula Dei]

No, they should be raised according to Inflation. Which means you can allow wages to freeze in a period of deflation.

So in other words, you want the default position to be a net wage increase in real terms over time?  That simply is not sustainable over time.  Wages should and can adjust over time as the economy and the need for certain jobs changes.

That sounds nice on paper, but in reality the opposite seems to be the case, as everyone I know who has a job is making more now then they would have in the 1880's, the 1920's or the 1950's.

On a more serious note, the default position should be 'purchasing power' (do you guys have that term?) not going down, or not going down significantly over a longer period of time. And if possible at all, it should be rising.