The tariff agreement on job security (Tarifvertrag Beschäftigungssicherung) in force in the metallurgy and electronics sector, enabling companies facing a dropping demand to reduce working time, with the consent of their works council, from 35 to 30 hours (or even 29) a week, with a corresponding wage reduction of 14-17%. In exchange, the company concerned must give its employees job security. Yet, the Gesamtmetall employers’ federation thinks that these “employment pacts” are penalized by social law. Indeed, if this reduction of working time isn’t enough and the company has to appeal to partial unemployment or even dismissals, employees who accepted the pact are penalized twice. Indeed, compensation received for partial unemployment as well as unemployment benefits paid by the Federal Employment Agency are based on the last salary of the employee concerned.
orresponding wage reduction of 14-17%. In exchange, the company concerned must give its employees job security. Yet, the Gesamtmetall employers’ federation thinks that these “employment pacts” are penalized by social law. Indeed, if this reduction of working time isn’t enough and the company has to appeal to partial unemployment or even dismissals, employees who accepted the pact are penalized twice. Indeed, compensation received for partial unemployment as well as unemployment benefits paid by
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