Germany: steel industry workers obtain ‘Covid bonus’ and additional annual payments

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.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

‘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 of €

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
EU: the Commission will set up an Expert Group on the impact of AI in the world of work
The news. On 22 July 2026, the European Commission published a progress report on the EU-27’s achievements regarding the objectives of the European Pillar of Social Rights, reinforced by the...
Belgium: toward an additional five days of leave following the birth of a child
The news. On 18 July, the Belgian federal government approved a draft bill introducing an additional five days of leave following the birth of a child. This entitlement would be added to existing...
Germany: a national action plan to strengthen collective bargaining
The news. On 22 July, the German federal government unveiled a national action plan to promote collective bargaining in response to the requirements of the EU minimum wage directive. The directive...
Belgium: Government Proposes Annualised Working Time
The news. On 18 July, the Belgian Council of Ministers approved a preliminary draft bill introducing annualised working time, allowing hours to be averaged over a full year rather than on a weekly...
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Germany: Volkswagen and Porsche face massive restructuring
Volkswagen’s Supervisory Board met on 9 July to review a sweeping restructuring plan that includes the elimination of up to 120,000 jobs and the closure of factories in Germany. The carmaker’s...
2
Germany: at Tesla, the “Optimus” project could further escalate labor tensions
Tesla’s announcement that employees at its German Gigafactory will be used to test the humanoid robot “Optimus” comes amid significant legal uncertainty that could further inflame the conflict...
3
France: increase in the minimum hourly activity pay for platform delivery riders
The info. On 10 July, the French Employment Platforms Social Relations Authority (ARPE) announced the signing of an amendment to the agreement on the minimum income of independent food delivery...
4
Spain: Banco Santander offers early retirement from age 55
The management of Spanish bank Santander and the trade unions reached an agreement on 17 July on an early retirement scheme that will allow employees to leave the company voluntarily from the age...
5
Germany: a national action plan to strengthen collective bargaining
The news. On 22 July, the German federal government unveiled a national action plan to promote collective bargaining in response to the requirements of the EU minimum wage directive. The directive...
6
Italy: employers’ organisations agree on how to determine the reference collective agreement for each sector
The news. Fourteen employers’ organisations, including the country’s largest business associations—Confindustria (industry), Confcommercio (commerce and services) and ANIA...