Circuit board manufacturer Liebers in Ingolstadt What employees on short-time work have to do without

Short-time work due to the coronavirus. 70 percent of companies within IG Metall’s organizational scope are affected, involving 1.7 million employees. In 61.6 percent of these companies, IG Metall and works councils have secured agreements requiring employers to supplement employees’ short-time work benefits to 80, 90 percent, or more of their normal net pay.

However, 38.4 percent of companies are not providing any top-up. At these companies, employees face the prospect of seeing their pay drop to the statutory short-time work allowance of 60 percent of their normal net pay (67 percent for those with children).

The circuit board manufacturer Liebers in Ingolstadt also does not provide any top-up to the short-time work allowance. With only four to eight days of work per month, this means significant financial losses for employees.

“The employer says he has no money,” explains Ursula Enzenberger of IG Metall Ingolstadt. “Sure, you can’t make huge profits with circuit boards. However, there are other small companies in our area that do pay. At the machine manufacturer Biersack, which has 120 employees, for example, we’ve just negotiated a top-up to at least 75 percent, plus a COVID-19 bonus of 200 euros.”

Increase in short-time work benefits comes too late for many

The employees at Liebers feel left in the lurch—not so much by their employer, but mainly by politicians.

“60 percent. They should be ashamed of themselves,” criticizes works council chairman Mike Zuber. “We’re the economically strongest country in Europe, but when it comes to short-time work benefits, we’re at the very bottom. Everywhere else in Western Europe, it’s 80 percent or more.”

For weeks, IG Metall has been running a campaign to push for higher short-time work benefits. Now the grand coalition has finally decided: Short-time work benefits are to increase —albeit only starting in the fourth month of short-time work. At that point, they’ll amount to 70 percent (77 percent for those with children) of net pay. Starting in the seventh month, the rates will rise to 80 and 87 percent.

For many employees at companies that provide a top-up, this comes at just the right time. Many companies are already facing liquidity problems. The top-up only lasts three to four months.

For employees who receive no top-up at all—as is the case at Liebers in Ingolstadt—the increase comes too late. They have to cut back and do without many things.