Germany: 200,000 agency workers get a 5% wage increase

An agreement which took time. The agreement signed affects about one in three temporary employees. It will enter into force on May 1, 2010 and expire on April 30, 2012. It provides for a first 2.5% wage increase on May 1, 2010 and another 2.5% raise one year later as well as a single €80 bonus. Thus, on May 1, minimum hourly wage will go to €7.56 in western Germany and €6.62 in the east. BZA chief negotiator Thomas Baumer told Planet Labor that he was satisfied with this agreement which finally brings “safety” to employers and employees after a long period of uncertainty. Indeed, the DGB terminated the last tariff agreement as early as December 2008. Negotiations notably stumbled across the social partners’ disagreement on the amount of the wage increase. They were also outshined by the relentless political debates on the introduction of minimum wage in the temporary sector (see our dispatch No. 080118).
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Baumer told Planet Labor that he was satisfied with this agreement which finally brings “safety” to employers and employees after a long period of uncertainty. Indeed, the DGB terminated the last tariff agreement as early as December 2008. Negotiations notably stumbled across the social partners’ disagreement on the amount of the wage increase. They were also outshined by the relentless political debates on the introduction of minimum wage in the temporary sector (see our dispatch No. 080118).

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