On Saturday 27 March, social partners in the steel industry of norther Germany struck a new collective agreement for the 70,000 employees in the sector, in the Länder of North Rhine-Westphalia, Lower Saxony and Bremen. Those employees covered by the deal will be eligible for a so-called 'Covid bonus’, an exceptional payment of €500, which will be paid on 30 June 2021. They will then receive an additional payment each year, amounting to €600 from 2023. Depending on the economic situation of the company, these special payments may be used to fund job guarantee measures. The agreement has been signed at a crucial time, amid ongoing negotiations to renew the collective agreement in the metal industry. These negotiations will resume this afternoon and an agreement could well be reached tonight.
‘Covid bonus’ and special payments. In their last round of collective bargaining, in March 2019, the German employer federation Arbeitgeber Stahl and the trade union IG Metall agreed on a 3.7% wage increase for steel workers in North Rhine-Westphalia, Lower Saxony and Bremen (see article n°11050). However the agreement struck on 27 March does not provide for a linear increase in wages but guarantees the payment of permanent special bonuses. Employees will first receive a one-off Covid bonus...
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