Frankfurt am Main – IG Metall has negotiated better collective bargaining agreements for temporary workers in the metal and electrical industries. Under the new agreements, temporary workers will receive higher pay in the future. Starting January 1, 2018, those who have been on assignment for 15 months or more will receive a higher industry-specific bonus of up to 65 percent in addition to the standard temporary employment rate. This will bring temporary workers’ pay up to the same level as that of permanent employees. IG Metall, the Federal Employers’ Association of Personnel Service Providers (BAP), and the Association of German Temporary Employment Agencies (iGZ) have reached this agreement, IG Metall announced on Friday in Frankfurt.
Previously, temporary workers reached the highest tier—with a 50 percent industry surcharge—after nine months. The industry surcharges must be paid after just six weeks on the job and increase in stages. “Thanks to the industry surcharges, temporary workers in the metal and electrical industries earn significantly more than they would under the standard temporary employment wage scale,” explains Jörg Hofmann, President of IG Metall. In the first nine months, temporary workers earn between 3,000 and 7,000 euros more, depending on the nature and classification of their work. Although the Temporary Employment Act (AÜG) stipulates equal pay for temporary and permanent employees starting in the ninth month, this does not apply to most temporary workers because more than 70 percent are deregistered from the company. The collective bargaining agreement has a term of 44 months. It applies to approximately 200,000 temporary workers within IG Metall’s organizational scope.
In parallel with the collective bargaining agreement on industry-specific surcharges, IG Metall and metal industry employers have also revised the terms and conditions for temporary work. The Collective Bargaining Agreement on Temporary Work (TV LeiZ) requires client companies to offer the temporary worker a permanent position after 24 months. Furthermore, a permanent position may not be filled with temporary agency workers. As a result, the collective bargaining agreement offers significant advantages over the law: While the new Temporary Employment Act (AÜG) stipulates that a temporary agency worker may be employed at the same company for no more than 18 months, unlike the TV LeiZ, the law does not provide for a right to permanent employment. Furthermore, the user company is permitted to fill the same position with a constantly changing roster of temporary workers. “The legislation on temporary work is inadequate. The law fuels the revolving-door effect instead of finally making it clear: Temporary work must not be a permanent substitute for permanent employment,” criticizes Hofmann. “The collective bargaining agreement guarantees temporary agency workers better conditions and a better prospect of permanent employment than the law does. The permanent hiring of temporary agency workers is a priority for IG Metall. In the metal and electrical industries, we have succeeded in enshrining this principle in the collective bargaining agreement. Strong works councils make use of these rights.”
The collective bargaining agreement enables works councils to voluntarily negotiate further improvements, such as quotas for temporary work, higher pay, or equal pay from day one. Within the framework of such a works agreement, the TV LeiZ also allows the maximum assignment period to be extended to 48 months in exceptional cases. This can be in the interest of temporary workers if works councils negotiate better terms. In addition, many temporary workers serve as skilled professionals on projects lasting longer than 24 months, such as in research and development. It is advantageous for them to be able to complete their project rather than being removed from the assignment in the middle of it. “Ultimately, it’s better for temporary workers to stay at a company for up to 48 months with good working conditions and good pay than to be terminated after 18 months as required by law, transferred to a worse company, and earn significantly less again—or even become unemployed,” emphasizes Hofmann. “We’re not hiding behind the law; rather, we’re regulating temporary work so that temporary workers are truly better off.”
Nevertheless, from IG Metall’s perspective, the new Temporary Employment Act (AÜG) also has advantages: It prohibits the use of temporary workers as strike breakers and prevents client companies from retroactively reclassifying service contracts as temporary employment to avoid penalties for violations.
