Germany: metal sector agreement includes a 4.3% salary increase and a landmark provision to make working time more flexible

Late into the evening of 05/06 February the metal sector’s social partners, IG Metall and the employers’ body struck a new collective agreement that is set to run for 27 months and covers the period between 01 January 2018 and 31 March 2020. Termed by employers as ‘balanced’ but ‘complex’, the main thrusts of the agreement comprise a 4.3% salary increase for 3.9 million workers in the sector as well as the creation of a substantial ‘working time corridor’ without being called as such. Temporary variations in weekly working time will be able to range between 28 and 40 hours. This compromise agreement has been struck in the ‘pilot’ area of Baden-Wurttemberg and as previously has been the case the remaining districts are expected to follow suit.
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A system fit for the 21st century. What have been tense collective negotiations that commenced on 15 November 2017, the metals sector finally reached agreement on the night of 05/06 February thus avoiding a much-feared general strike. Nonetheless some 900,000 workers had mobilized during the negotiation process’s first phase and 500,000 joined during its second that included IG Metall’s first implemented 24-hour work stoppage tactic, which significantly hurting company production levels....

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