Germany: in energy, EON employees get a wage increase divided in two over 19 months

The outcome of the renewal of the collective agreements covering the 30,000 employees of the largest electricity provider in Germany, EON, as well as Tennet’s German employees, is far from the requests presented last April by the “Tariff Committee” composed of Verdi and IG BCE negotiators.  At the time, the two unions asked for a 6.8% wage increase over 12 months.  Yet, when the wage agreement signed last Tuesday was revealed, the unions said they were satisfied because of the disruptions affecting the German energy policy, which should affect EON’s financial returns.  The bargaining committee agreed on a 3.2% increase over 12 months starting on July 1, 2011, followed by a 1.7% increase over 7 months starting on June 1, 2012.  This increase will affect the wages of permanent employees and of apprentices.  Besides, EON guaranteed part of profit-sharing 2011, which will be paid in 2012.  Even though the agreement lasts for 19 months, unions are mostly happy that they obtained a wage increase similar to what was agreed to in other businesses in the sector.  At the end of 2010, with a more favorable economic context, the social partners of the second largest energy company in Germany, RWE, agreed on a 3.4% increase over 13 months (between November 1, 2010 and November 30, 2011) for 26,000 employees.