PRESS RELEASE Higher pay and flexible hours resolve collective bargaining dispute

Frankfurt am Main/Hanover – For five weeks, more than 24,000 employees at auto repair shops and car dealerships across Germany have been applying pressure through warning strikes. As of early Tuesday morning, an initial solution to the collective bargaining dispute has been reached: Employees in the automotive trade in Lower Saxony will receive a 5.6 percent pay increase in two stages. In addition, they will have the option to take five extra days off. This was agreed upon by the IG Metall district of Lower Saxony-Saxony-Anhalt and the employers’ associations.

IG Metall’s collective bargaining director, Nadine Boguslawski, said: “This collective bargaining agreement shows that we do not need the eight-hour workday to be abolished as planned by politicians. On the contrary: Companies and employees need flexible working hours under collective bargaining agreements that aim to reduce workloads and make employers more attractive. The new five days off send the right signal for a first shift in thinking within the skilled trades sector in light of labor shortages and a lack of skilled workers.” Under the new “WorkFlex+” collective bargaining agreement, employees in the automotive trade will be able to convert pay into time off in the future. This gives them the option of up to five additional days off per year.

Real wage increase for employees; disproportionately higher for apprentices

According to Boguslawski, the agreement on pay is “good news for higher real wages.” Specifically, automotive workers in Lower Saxony will receive pay increases of 2.3 percent starting July 1, 2025, and an additional 3.3 percent starting August 1, 2026. Apprentices will receive a disproportionately larger increase, with a pay raise of 80 euros effective August 1, 2025, followed by an additional 3.3 percent effective August 1, 2026.

Collective bargaining negotiations are continuing in the remaining IG Metall districts. Boguslawski said, “Nationwide actions and solidarity made this agreement in Lower Saxony possible. We call on employers in the other bargaining regions to follow suit. The labor and skilled-worker shortage can only be solved with good collective bargaining agreements.”

A total of 430,000 people are employed in the automotive trade nationwide. 91,000 benefit from collective bargaining coverage and an IG Metall collective bargaining agreement.

Note to editors: Please also refer to the press release from IG Metall Lower Saxony-Saxony-Anhalt