Press Release No. 09/2013 IG Metall: Steel Industry Agreement Ensures Employees a Fair Share in Economic Growth

Frankfurt am Main – IG Metall considers the collective bargaining agreement reached today for the 75,000 workers in the steel industry in northwestern Germany to be a fair outcome that continues the positive trend in collectively bargained wages. “This outcome is further proof of IG Metall’s reliable, medium-term collective bargaining policy. It ensures that workers receive an appropriate wage increase. With the provisions on partial retirement and retirement benefits, we have taken an important step toward fair transitions into retirement,” said Berthold Huber, President of IG Metall, on Wednesday in Frankfurt.

The agreement takes into account the overall economic situation, inflation, and productivity, as well as the situation in the steel industry. Starting March 1, 2013, steel industry workers will receive a 3 percent increase in wages, salaries, and apprenticeship stipends. The agreement is set to run for 15 months, through May 31, 2014. The percentage of employees eligible for partial retirement will be raised from 4 to 5 percent for this period. Employees who enter into a partial retirement agreement in the future will receive a 2 percent inflation adjustment—up from the previous 1 percent—on their severance payments upon transition to retirement. For apprentices who begin participating in pension-qualifying benefits effective immediately, the current employer contribution has been doubled to 26.59 euros. The collective bargaining agreement on job security, which expired at the beginning of the year, has been extended. On March 7, the bargaining committee will be informed of the outcome of the negotiations. A decision on whether to accept the outcome will be made only after a comprehensive discussion within the workplaces.