More money for workers in the steel industry in northwestern Germany: At the end of June, they will receive a one-time COVID-19 bonus of 500 euros. At the end of December, they will receive an additional payment of 250 euros—and another 250 euros at the end of February 2022. This new collective bargaining bonus—totaling 500 euros—can also be converted into time off to help secure employment.
IG Metall and the employers reached this agreement after seven hours of negotiations on Friday night . Now the elected bargaining committee must vote on the outcome. The collective bargaining agreement affects approximately 70,000 workers.
The one-time COVID-19 bonus will expire on May 31, 2022. At that point, IG Metall can negotiate another wage increase.
However, the new additional payment—which also serves to secure employment—the new “collective bargaining supplement”—is permanent. Starting in 2023, it will increase to 600 euros per year and will rise in line with future collective bargaining increases. The money will be paid out when the economic situation is favorable. In the event of employment difficulties, working hours will be reduced by converting the additional payment into time off.
Low-income workers and apprentices benefit the most
Trainees receive 60 percent of the negotiated payments—which is disproportionately high relative to their pay. At the end of June, they will receive a one-time COVID-19 bonus of 300 euros, as well as a new collective bargaining supplement of 300 euros, which will be paid out in installments at the end of December and the end of February 2022. Starting in 2023, the additional collective bargaining allowance for apprentices will increase to a permanent annual amount of 360 euros.
For apprentices, the additional collective bargaining allowance cannot be converted into time off, as the time allocated for teaching the curriculum according to the training plan cannot simply be reduced under the law.
“In the midst of the greatest economic crisis of the postwar era, the collective bargaining partners in the steel industry have reached a responsible and fair compromise,” says Knut Giesler, district director of IG Metall in North Rhine-Westphalia and chief negotiator for Stahl Nordwest. “Employees will not only receive a one-time payment, but their wages will also increase permanently. This has created further opportunities to secure jobs. Another positive aspect is that apprentices and those in the lower pay grades will benefit disproportionately from this negotiation outcome.”
Additional Permanent Annual Bonus
With the new additional payment—which also serves to secure jobs—there are now three permanent annual special payments in the iron and steel industry: First, the traditional annual special payments—vacation pay and Christmas bonus. Second, the additional collective bargaining allowance introduced in 2020—or Collective Bargaining Allowance I of 1,000 euros—which employees can optionally convert into five days off. And third, the new additional payment of a new Collective Bargaining Supplement II of 500 euros—rising to 600 euros starting in 2023—which the company can convert into time off in the event of a crisis.
