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.
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‘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 €

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