Europe’s Unions Have Gone Quiet. Wages Are Up and Inflation Is Down.

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German postal workers scored an average 11.5% pay increase in March. U.K. teachers settled for 6.5% in July. Union successes have rippled across European...

Organized labor has surged back into the U.S. conversation, with successful strikes by the United Auto Workers and Hollywood writers and actors. Europe, the motherland of labor unrest, has gone quiet.

One reason is that the winter-spring labor actions worked. German postal workers scored an average 11.5% pay increase in March. U.K. teachers settled for 6.5% in July. The union successes have rippled across economies. U.K. wage hikes are running at 7% to 8%, reports Hannah Slaughter, senior economist at the Resolution Foundation in London.

Attention has shifted to the prospect of recession, which should grip most of Europe by early next year, says Eoin Drea, senior researcher at the Wilfried Martens Centre for European Studies. “Both employers and the unions are worried about what the winter will bring,” he says. “That has dampened expectations.”

 

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