Germany: new banking collective agreement focuses on worsening working conditions since the beginning of crisis

Marginal wage increase. The agreement reached on Wednesday night (June 9), between Verdi’s negotiators (which represents 240,000 members in the sector) and the negotiators of the AGV Banken, the sector’s employers’ organization, will only bring moderate wage increases to banking employees. Verdi, which mostly focused on the issue of working conditions, actually started negotiating without figured claims. For the ongoing year, employees will receive a single €300 bonus (€75 for apprentices). Then, wages will increase by 1.6% in January 2011. The agreement is valid until February 2012. Meanwhile, the framework agreement on “ protection against rationalization” (Rationnalisierungsabkommen) was renewed. It defines the social partners’ conduct in the event of staffing cuts. The “31-hour clause” was also extended. It allows for the negotiation of shorter working time at company level in case of economic difficulties. Thus, a company can cut working time down to 31 hours a week with equivalent pay cuts. In return, the company promises to pay a compensatory bonus amounting to 20% of the loss of earnings as well as employment guarantee for the duration of the clause. The existing agreement on part-time work for older workers (Altersteilzeit) was also renewed.
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xtended. It allows for the negotiation of shorter working time at company level in case of economic difficulties. Thus, a company can cut working time down to 31 hours a week with equivalent pay cuts. In return, the company promises to pay a compensatory bonus amounting to 20% of the loss of earnings as well as employment guarantee for the duration of the clause. The existing agreement on part-time work for older workers (Altersteilzeit) was also renewed.

Verdi at employees’ bedside. During thes

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