Social partners in Germany’s steel industry announced a new collective agreement for the 72,000 workers in the areas of North Rhine-Westphalia, Lower Saxony and Bremen, where the majority of the country’s steel companies are based. Under the agreement, struck during the night between Saturday and Sunday, workers in those areas will enjoy a 3.7% pay rise as of 1 March 2019, as well as an ‘options model’ for a yearly wage supplement. This model, a central element of the agreement, was the main bone of contention during negotiations; it offers employees an additional 1000 euros on 1 July each year, from 2020, which they can collect in the form of pay or additional days of leave. This mechanism is used increasingly frequently in Germany and, according to Knut Giesler, chief negotiator for the IG Metall Union, gives workers “greater decision-making autonomy”. The agreement will last for 26 months and expire on 28 February 2021.
Compromise on wages… At the end of lengthy and tense negotiations, marked by warning strikes, social partners in Germany’s steel sector reached a compromise in the night between 16th and 17th March. The new collective agreement provides for a 3.7% pay rise, which will come into effect retroactively, as of 1 March 2019, and a one-off bonus of 100 euros for the months of January and February.
Do you have information to share with us?