Press Release No. 29/2016 IG Metall: Collective Bargaining Agreement Boosts Purchasing Power and Secures Jobs

Cologne – IG Metall has described the collective bargaining agreement in North Rhine-Westphalia as a compromise that is good for both sides. “This is a landmark agreement. Workers are receiving a significant increase in their real incomes and thus a fair share of the economic success,” said Jörg Hofmann, President of IG Metall, on Friday in Cologne. The union leader thanked the approximately 760,000 metalworkers who, through their participation in the warning strikes of the past few days, had strongly supported IG Metall’s goals.

The agreement provides for a one-time payment of 150 euros for the months of April through June 2016. Starting July 1, wages will be increased by 2.8 percent in the first phase. The second phase will follow on April 1, 2017, with a 2 percent increase. Overall, this amounts to a 4.8 percent wage increase reflected in the pay scale by the end of the agreement period. A differentiation clause was agreed upon for the one-time payment and the second stage of the wage increase, allowing the parties to the collective bargaining agreement to postpone the wage increase for union-affiliated companies facing economic difficulties. The term of the agreement is 21 months in total.

The collective bargaining agreement is a step toward greater fairness. With this, “IG Metall is continuing its course of reliable collective bargaining policy,” said Hofmann. “It strengthens private consumer demand. At the same time, this is an agreement that preserves companies’ innovative capacity. No company will be overburdened,” emphasized the IG Metall chairman. The metal and electrical industry is thus well-equipped for the future to take advantage of opportunities such as Industry 4.0, develop new business models, or drive decarbonization. “This requires committed employees, and they must be paid fairly. And we need entrepreneurs, not number-crunchers—this collective bargaining agreement stands for that as well,” said Hofmann.