The collective agreements’ committee of the German construction firms’ federations eventually agreed, on Friday, May 16, to the agreement bitterly negotiated with the sector’s union, IG BAU. The compromise plans to keep restoring the remuneration balance between eastern and western Länder with an increase divided in two, 3.1 and 2.6 percent in the west and 3.8 and 3.3 percent in the east. Supplementary company retirement, which only existed in the west, will gradually be introduced in the east, with the possibility of loan back pensions.
The collective agreement signed on May 16 by the federation of construction firms (Zentralverband des Deutschen Baugewerbes – ZDB) confirms that the sector is doing well in 2014. A warm winter combined with the country’s good economic situation today allowed businesses to ignore the winter break. At the end of January, the volume of orders was 10.6 percent higher than in January 2013 and the sector’s sales were growing by 27.1 percent. Therefore, the IG BAU union coldly rejected employers’ o
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