Press Release Collective Bargaining Agreement: Employees at Auto Repair Shops and Car Dealerships Secure Higher Wages

Frankfurt am Main/Leinfelden-Echterdingen – Employees at auto repair shops and car dealerships have secured a pilot agreement through warning strikes: Late Friday night, IG Metall and employers in the automotive trade in Baden-Württemberg agreed to pay raises for employees covered by the collective bargaining agreement.

Under the agreement, wages for employees will increase by 5 percent starting in November 2023 and by an additional 3.6 percent starting in October 2024. In addition, they will receive two inflation adjustment payments totaling 2,500 euros: 1,500 euros by July 2023 and 1,000 euros in the first quarter of 2024.

Apprentices in auto repair shops and car dealerships will receive pay increases of 70 plus 50 euros, as well as inflation adjustment bonuses totaling 1,250 euros. The new collective bargaining agreement in Baden-Württemberg is valid for 24 months.

Ralf Kutzner, executive board member of IG Metall, said: “This collective bargaining agreement provides tangible financial relief for employees. The automotive trade must become future-proof against the shortage of skilled workers by improving working conditions. Employers have now taken a first step in that direction.”

Nationwide, IG Metall mobilized over 23,000 workers for warning strikes over a three-week period. This marked the highest participation rate in this industry in years. The automotive trade employs 435,000 people nationwide. 91,000 workers benefit from a collective bargaining agreement. Kutzner: “Good collective bargaining agreements don’t just fall from the sky—they’re fought for right outside the workshop gates. This first agreement is a great achievement for all those who participated in the warning strikes.”

Following this collective bargaining agreement, regional negotiations will continue in the other districts. The goal is to have the terms of the agreement adopted in Baden-Württemberg.

Note: For information on regional collective bargaining negotiations, please contact the district press offices of IG Metall.