On February 12, 2004, the collective bargaining partners for the metal and electrical industries signed an “Agreement to Secure Jobs, Innovation, and Competitiveness” in Pforzheim. When people talk about “Pforzheim,” they’re referring to this collective bargaining agreement. Today, the agreement is part of the Collective Bargaining Agreement on Employment Security (TV BeSch).
A Temporary Exception with Clear Criteria
What made the “Pforzheim Agreement” so groundbreaking? The agreement allows companies to deviate from collective bargaining agreements for a limited time if doing so secures jobs or creates new ones. However, the regional collective bargaining agreement remains the standard; the deviation is the exception.
“The Pforzheim collective bargaining agreement was a prime example of successful internal flexibility,” explains Detlef Wetzel. He cites two key factors: “The workforce will not accept any restrictions without concrete prospects for growth and investment. And the members are involved in the decision-making process. Deviations are only permitted with their explicit consent,” says Wetzel.
How does this work in practice? After the bargaining partners, together with the works council and management, have assessed the economic situation, they can decide for the respective company that it may temporarily deviate from the minimum standards set by the collective bargaining agreement. For example: reducing Christmas or vacation bonuses, or shortening or extending working hours—with or without wage compensation.
Only with the employees and members
Only the collective bargaining partners can decide on such deviations. On the employer side, a representative of the regional employers’ association negotiates. And for IG Metall, this is usually the responsible administrative office, which is tasked with conducting the negotiations. It is important to note that IG Metall members at the respective company are involved from the very beginning.
IG Metall has established clear criteria for such deviating negotiations. Employee representatives must receive comprehensive information on the company’s economic situation, and the employer must demonstrate that the deviation is necessary. It is not sufficient for the employer to merely claim that it wants to secure jobs. The deviating agreement must contain clearly defined reciprocal obligations that employees can enforce through legal action. These include binding location guarantees or investment commitments. Furthermore, the deviations may only apply for a limited period of time .
“The goal is always a comprehensive package developed with employee participation, ultimately leading to the company’s recovery and alignment with general collective bargaining standards,” emphasizes Detlef Wetzel.
