Germany: 2010 collective agreements marked by the crisis

Maintaining employment, a priority. Reinhardt Bispinck, collective bargaining expert at the WSI, thinks that the analysis of the 2010 collective agreements leaves no doubt: they “were clearly marked by the crisis” and this impact will still be tangible next year.  Wage increases for 2011 already signed in 2010 will remain modest and range between 1.5 and 2.5%.  Among the key agreements negotiated and signed in 2010, the metal industry paved the way on February 18, 2010 with a “historical” agreement containing innovative measures in terms of employment guarantee and minimum wage increases (see our dispatch No.  100156). Regarding wages, the agreement provides for the payment of a single €320 bonus between may 2010 and march 2011, and a 2.7% wage increase from April 1, 2011. Depending on their economic situation, businesses may decide to bring forward or postpone the increase by two months.  In the meantime, a great number of businesses (Bosch, Audi, Siemens…) announced that they wanted to bring the increase forward to February 1st (see our dispatch No.  100798).  Then, the chemistry social partners followed, signing an agreement over 11 months only on April 21, 2010, providing for a single €550 bonus. The paper treating sector the got, on June 20, 2010, an agreement freezing wages from May to October 2010, and then providing for moderate wage increases (1.3% on 11/01/10, 1.5% on 05/01/11 and 1.3% on 03/01/12).  This collective agreement will expire on August 31, 2012.  Banking on the maintenance of employment, unions in the banking sector also chose wage moderation.  Adopted on June 10, 2010, their agreement provides for a single €300 bonus from May to December 2010 and a 1.6% wage increase on January 1, 2011.  The agreement is valid until February 29, 2012.