Press Release No. 04/2010 IG Metall Executive Board Decides on Early Collective Bargaining Negotiations on “Job Package” and Wages

Frankfurt am Main – IG Metall intends to bring forward the collective bargaining round for the metal and electrical industries to negotiate a “job package” and wage increases. The union’s Executive Board made this decision on Tuesday in Frankfurt am Main. “We want to find ways to secure employment in the metal and electrical industries through the crisis and give trained young people prospects for the future,” said IG Metall President Berthold Huber. He noted that it is necessary to supplement the current statutory short-time work program with a collectively bargained short-time work arrangement that also includes partial wage compensation, so that the reduction in working hours remains financially manageable for employees. At the same time, the wage increases to be negotiated must at least maintain real wages.

IG Metall is counting on a swift agreement. To this end, negotiations are to begin in the North Rhine-Westphalia and Baden-Württemberg districts. “In light of the deep crisis, the constructive forces among employers must prevail over the penny-pinchers,” Huber demanded.

Huber also called for support from policymakers. To this end, he said, the Federal Employment Agency’s reimbursement of companies’ social security contributions must be synchronized with the short-time work program, which has been extended to 18 months. Furthermore, the planned partial wage compensation must also be temporarily exempt from social security contributions. “It won’t work without political backing. I therefore call on the federal government to support our efforts at the collective bargaining table,” Huber demanded.

Helga Schwitzer, the IG Metall executive board member responsible for collective bargaining policy, pointed out that companies need planning certainty. “If companies are to avoid layoffs once short-time work ends, they need follow-up solutions quickly.” Job security, as pursued by IG Metall, would benefit all parties involved. “Employees win: They keep their jobs; employers win: They can retain skilled workers; policymakers win: They save money that they would otherwise have to spend on more unemployed people,” Schwitzer said.