- A 4.3 percent pay increase effective April 1, 2018,
100 euros for the months of January through March 2018,
a collective bargaining bonus equal to 27.5 percent of one month’s pay, as well as a lump sum of 400 euros starting in 2019.
- Eligibility for a temporary reduction in working hours to up to 28 hours for up to 24 months.
- Additional days off for child-rearing and caregiving, as well as relief from shift work.
Stuttgart – IG Metall has described the collective bargaining agreement for the 900,000 workers in the metal and electrical industries in Baden-Württemberg as forward-looking. “The collective bargaining agreement is a milestone on the path to a modern, self-determined world of work,” said Jörg Hofmann, President of IG Metall, on Tuesday in Stuttgart. IG Metall set key goals for this round of collective bargaining: a fair share of the industry’s economic success for employees, greater self-determination regarding working hours, a better work-life balance for everyone, and relief for shift workers. “We have achieved these goals,” said Hofmann.
The collective bargaining agreement provides for a 4.3 percent pay increase effective April 1, 2018, as well as a one-time payment of 100 euros for January through March 2018.
The Collective Bargaining Agreement: A Milestone
In addition, starting in 2019, all employees will receive a fixed amount of 400 euros plus a collective bargaining bonus equal to 27.5 percent of one month’s pay. Employees who are raising children, caring for relatives, or working shifts can choose to take eight days off in lieu of the collective bargaining bonus. The employer will cover the cost of two of those days.
The collective bargaining agreement also guarantees employees the right to reduce their working hours to up to 28 hours for up to 24 months. After that, they have the right to return to their original working hours.
The collective bargaining agreement runs through March 31, 2020.
“Employees will receive a significant increase in their real income. This outcome reflects the industry’s excellent economic situation and, at the same time, has a positive effect on the economy as a whole: The significant increase in income strengthens domestic demand and helps to further stabilize the economy,” said the IG Metall chairman.
Thanks to 1.5 million workers
“At the same time, this collective bargaining agreement marks a shift in working hours. For far too long, flexibility has been a privilege of employers. Now, for the first time, employees have binding rights to opt for shorter working hours—for themselves, for their health, and for their families,” said Hofmann. The collective bargaining agreement establishes a nationwide, binding right to support during life phases that are difficult to reconcile with gainful employment and in cases of particular health strain caused by shift work. “This is a first. The bargaining parties are thus jointly taking responsibility for ensuring that career paths are successful and that skilled workers in all sectors of industry can lead more self-determined and healthier lives.” The collective bargaining agreement also demonstrates that the bargaining parties are successful in developing innovative and tailored solutions. “Collective bargaining agreements are the appropriate tool for making working conditions attractive in the interests of both employees and companies.”
The IG Metall president thanked the approximately 1.5 million workers who, through their participation in the brief warning strikes and the full-day warning strikes of the past few days, had impressively and emphatically supported IG Metall’s goals. “In this round of collective bargaining, IG Metall has shown what can be achieved when you set a clear goal and pursue it strategically and with staying power. And in this dispute, we have proven that we can continue to mobilize a powerful force of solidarity to shape the future of work.”
IG Metall and Gesamtmetall recommend that the bargaining partners in the eastern German states hold talks on the process of harmonizing working conditions immediately following the conclusion of the collective bargaining agreement. In doing so, the economic conditions must be taken into account.
