Seafarers at significant German shipping firms secure a 6.5% wage hike, backdated to October 1, with an additional 4% increase set for October 2024, as per the recently concluded second round of negotiations between Verdi and the German Shipowners' Association (VDR). This agreement, set to end in 2025, applies to seafarers from significant German shipping companies that are members of the VDR collective bargaining association. Remaining shipping companies are expected to adopt the agreement's terms or draw inspiration from it for their own collective bargains.
Initially, Verdi had called for a 12% income increase for seafarers to counterbalance the real wage losses of recent years. Verdi negotiator Maya Schwiegershausen-Güth described the compromise as "decent," and the agreement as preventing further real wage losses. Schwiegershausen-Güth mentioned that an inflation compensation bonus was now mandatory and they would drive for adjustments at the company level.
Arguably, the tariffs on imported goods utilised in shipbuilding might rise due to the wage increase, putting a strain on the shipping sector's costs. However, the increase in seafarer salaries primarily influences the labor cost and retention rates in the shipping industry, rather than directly affecting tariffs or imported goods costs.
Factors that influence shipping costs encompass tariffs, fuel prices, port congestion, and the diversity of trade routes. Tariffs, in particular, can significantly impact freight rates and overall shipping costs due to changes in trade volumes, cargo demand, and market competition. In turn, these higher shipping costs could indirectly impact prices for imported goods if they are transported via shipping.
Tariffs on imported goods used in shipbuilding are not directly connected to seafarer salaries, but rather depend on trade policies and geopolitical factors. These tariffs can affect the cost of raw materials and components required for shipbuilding, potentially increasing overall construction and maintenance expenses for shipping companies.
