Cost-of-living crisis is worsening not just in Pakistan but even in developed West
Business
German train drivers take industrial action in Germany after their pay raise demands are rejected
LAHORE/BERLIN (Web Desk/Reuters) – Inflation is hitting the low-income groups and even the middle class hard across the world, including Pakistan, as reduced purchasing power has produced a cost-of -living crisis at a time when the international financial institutions, top central banks and many governments are against pay raises while arguing that any increase in money supply will fuel the prices.
They have gone for interest rate hikes which in turn have crippled the economy, meaning there are no new businesses or expansion in existing ones to generate job opportunities.
As small enterprises are finding it hard to survive and are shutting down or bought by the larger entities, many big businesses – especially the banks and big tech companies – are reducing their workforce.
The same big businesses, which earned huge profits during and after the COVID pandemic through stock markets and other avenues, aren’t ready to share their earnings with their staff, thus making the employees rejecting the reasons given behind the high inflation and interest rates.
Hence, they don’t see any point in rising stocks and could only see a widening rich-poor divide as a result of unbridled concentration of wealth being seen since 1980s thanks to the narrative best illustrated and promoted by Thatcherism – a reduced government role and large-scale privatisation with reduced social benefits or social security.
In a latest example, Reuters reported that Germany's GDL train drivers' union said on Wednesday it would go on strike Thursday (today) afternoon until Friday evening as a wage dispute with rail operator Deutsche Bahn continues.
The strike will start at 18:00 local time for freight traffic and at 22:00 for passenger trains. It will end on Friday at 22:00, the union said.
In addition to Deutsche Bahn, the strike also applies to regional train operators Transdev, AKN Eisenbahn and City-Bahn Chemnitz.
The GDL broke off negotiations with Deutsche Bahn at the end of November and announced a further strike. At the same time, the union has initiated a ballot for an indefinite strike, the results of which should be available before Christmas.
The GDL is demanding a reduction in working hours from 38 to 35 hours per week for shift workers, as well as an increase of 555 euros per month and a one-off inflation compensation bonus of 3,000 euros.
Deutsche Bahn rejects the demanded reduction in working hours due to a labour shortage and has offered an 11 per cent increase in wages and salaries for a collective agreement term of 32 months. The GDL rejected the offer.
The train drivers' union has already held a 20-hour strike at Deutsche Bahn in mid-November.
