PRESS RELEASE NO. 08/2020 IG Metall decides to terminate the collective wage agreements for the metal and electrical industries

Frankfurt am Main – At its meeting on February 26, the IG Metall Executive Board decided to terminate the collective bargaining agreements covering wages, salaries, and apprenticeship stipends in the metal and electrical industries effective March 31. In Baden-Württemberg, the framework collective bargaining agreement for apprentices will also be terminated. In doing so, the Executive Board acted in accordance with the motions put forward by the regional bargaining committees.

At their meetings on February 20, the regional bargaining committees instructed the negotiating committees to achieve results in line with the “Moratorium for a Fair Transition.” IG Metall proposed this moratorium to employers on January 24, 2020. It stipulates that employers refrain from unilateral measures to reduce staff, close locations, or relocate operations. IG Metall is prepared to begin early negotiations on a “future package” in all collective bargaining regions. The goal is to reach an agreement by April 28, 2020, within the framework of the peace obligation.

A key element of the proposed “future package” is that employers agree to conclude “future collective bargaining agreements” within their companies. These agreements are intended to establish commitments regarding investments, products, job security, and training that will shape the structural transformation of the industries. It also involves a package of collective bargaining instruments for job security, skills development, and top-up payments to short-time work benefits. In addition, IG Metall aims to strengthen employees’ purchasing power through a pay increase reflected in the wage scales and to secure a sustainability bonus for its members. Other goals of IG Metall in the 2020 collective bargaining round include aligning working hours in the east with those in the west and including dual-track students in collective bargaining agreements.

The bargaining committees of the regional bargaining areas have not put forward any specific demands, provided that an agreement is reached by early April. If no agreement is reached by Easter, the attempt at a moratorium would have to be considered a failure.

The IG Metall Executive Board has also decided to terminate the compensation regulations for Volkswagen AG. This termination was requested by the Volkswagen AG bargaining committee and will take effect on April 30, 2020. Volkswagen AG is governed by a company-specific collective bargaining agreement.

No formal resolution on demands was adopted. The bargaining partners have mutually agreed to extend the deadline for submitting demands to April 21.