STOCK MARKET WATCH -- Thursday, 30 October 2014

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26. Merkel Proposes Curbing Unions as Strikes Cripple Germany

http://www.bloomberg.com/news/2014-10-30/merkel-proposes-curbing-unions-as-strikes-cripple-germany.html

German Chancellor Angela Merkel is proposing curbs to union power following walkouts in recent months that have crippled the country’s transport network.

Strikes this year by Deutsche Lufthansa AG (LHA) pilots have led to the cancellation of 5,800 flights, while a series of walkouts by Deutsche Bahn AG engineers have brought trains to a standstill. Now, Merkel’s government, in a proposal released this week, is pushing to limit the role of smaller labor groups in wage negotiations.

“We are observing a tendency for strikes by small unions with big consequences that result in many, many people suffering,” Merkel told reporters. “We’ve made the decision” to change the law to limit collective-bargaining power to one party per business, she said.

Even before this year’s strikes, which include walkouts by Amazon.com Inc. (AMZN) workers, labor unrest in the country has been rising. The number of companies hit by industrial action soared in 2013 to 1,384, the highest in two decades, according to data published by the Federal Labor Agency. While unions say they’re pushing for pay gains to make up for stagnating household incomes, companies argue they can’t afford higher wages as Europe’s biggest economy flirts with recession.