Flexible Wage Deals Boost Competitiveness

Flexible wage agreements can strengthen competitiveness and protect jobs if workers retain safeguards. A new study highlights differing impacts across Germany and Italy.

Employees of Volkswagen work at the group's first Circular Economy facility to dismantle cars, at Volkswagen's EV factory in Zwickau, Germany, October 28, 2026. REUTERS/Lisi Niesner

Flexible wage agreements strengthen competitiveness and protect jobs when workers retain effective safeguards, a study by the Rockwool Foundation Berlin showed on Thursday morning. The findings highlight how decentralized bargaining alters labor market resilience across major European economies.