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Press Release No. 05/2016 IG Metall Executive Board recommends a wage increase range of 4.5 to 5 percent for...

... further discussion

IG-Metall-Fahnen
Foto: IG Metall

2 February 2016 2 February 2016

Frankfurt am Main – The Executive Board of IG Metall has recommended to the regional bargaining committees for the 2016 collective bargaining round in the metal and electrical industries a framework of demands calling for a 4.5 to 5 percent increase in wages and apprenticeship stipends over a twelve-month period. “With our wage demand, we want to contribute to distributive justice in our society,” said Jörg Hofmann, President of IG Metall, on Tuesday in Frankfurt. “This demand is financially feasible for companies and ensures that employees receive a fair and well-deserved share of economic growth. It is also urgently needed to further strengthen domestic demand,” said Hofmann.

The economic situation of companies is stable, and the outlook for 2016 is good in the metal and electrical industries, according to statements from trade associations as well. As always, IG Metall bases its wage demand on the European Central Bank’s (ECB) medium-term inflation target of up to 2 percent and an expected medium-term trend increase in overall economic productivity of about 1.1 percent. “The earnings situation in 2015 was at an above-average level, with a respectable net return on sales of 3.6 percent. Employment has grown significantly. The metal and electrical industries have thus coped very well with the temporary rise in unit labor costs, partly due to other positive special factors,” said Hofmann.

In addition to a fair wage increase, IG Metall intends to use the upcoming collective bargaining round to help increase collective bargaining coverage. “Employees in companies not covered by collective bargaining agreements have the same right to wage increases. On average, they earn 24.6 percent less for comparable work. Fairness is only possible with a collective bargaining agreement! That is why, in this round of collective bargaining, we will increasingly involve workforces from companies not covered by collective bargaining agreements in order to increase collective bargaining coverage once again,” said Hofmann.

The regional bargaining committees will discuss and decide on the demands to be presented on February 23, 2016. The IG Metall Executive Board will address the decisions of the bargaining committees in an extraordinary meeting on February 29, 2016, and finalize the demands. The collective bargaining agreements on wages expire on March 31, 2016, and the peace obligation ends on the night of April 29, 2016.


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