Temporary Work Temporary workers in the East will receive higher pay

In January, IG Metall and the other DGB unions negotiated a collective bargaining agreement for temporary agency workers that secures pay increases in three stages: a 1.9 percent increase starting in April 2020, a further 3 percent increase starting in April 2021, and a 4.1 percent increase starting in April 2022.

Wages for temporary agency workers in the East are rising even more sharply and will be brought in line with those in the West: Following the 3 percent increase (2.31 in pay grade 1) starting in April 2020, there will now be an additional 2.2 percent increase starting in October. By April 2021, the pay parity will be achieved: Temporary agency workers in the east will then earn the same as their colleagues in the west—at least 10.45 euros per hour, rising to 10.88 euros per hour starting in April 2022.

More Vacation and Christmas Bonuses

Annual bonuses—vacation and Christmas bonuses—are also increasing. In 2021, these will range from 150 euros (after six months of employment) to 225 euros (after three years). In two stages, the annual bonuses will increase to between 200 and 400 euros each by 2023. Another new feature is that the annual special payment will be adjusted in line with collective bargaining agreements and increased in tandem with future wage increases.
 

A Generous Bonus for IG Metall Members

In addition to the annual special payments starting in 2021, temporary agency workers who are union members will receive an additional bonus of 100 to 300 euros per year. The member bonus will increase to 200 to 700 euros per year by 2023.

If you’re not yet a member, you should join IG Metall by November 2020 at the latest to secure this extra bonus on top of your 2021 Christmas bonus!

More Vacation Time Sooner—25 Days Starting in the First Year

In addition, temporary agency workers will receive more vacation time: 25 days in their first year of employment with their staffing agency (previously only 24 days), 27 days in their second and third years of employment, and 30 days starting in the fourth year (previously only starting in the fifth year).

More pay grades – better classification

The unions in the DGB collective bargaining association have achieved another improvement regarding pay grades. Starting in July 2020, Pay Grade 2 will be split into Pay Grade 2a and Pay Grade 2b. In addition, Pay Grades 3 and 4 have been realigned, and Pay Grade 4 has been upgraded to a true benchmark pay grade. In the future, it will be easier to correctly classify temporary agency workers, making it simpler to enforce these classifications, explains IG Metall negotiator Juan-Carlos Rio Antas. “A subtle but very helpful improvement for temporary agency workers.”

More Rights Regarding the Work-Time Account

In addition, the DGB unions secured improvements regarding the working time account. The iGZ collective bargaining agreement established an enhanced right for employees to receive payment for accumulated hours, and the unlawful provision that allowed the company to dispose of these hours for up to two days was finally eliminated. Another important achievement is that the collective bargaining agreement now unambiguously stipulates that bridging periods without temporary assignments by using the working time account is only possible with the temporary worker’s consent.

Excellent Collective Bargaining Outcome in a Difficult Situation

“We’ve achieved a very good collective bargaining outcome, given the economic situation: In recent months, over 200,000 temporary agency workers nationwide have been deregistered,” explains Ronja Steil, works council member at Adecco Southeast and member of the collective bargaining committee for temporary agency work. “I’m particularly pleased that we were finally able to significantly increase vacation pay and the Christmas bonus. Above all, it’s highly commendable that we secured a bonus for union members. After all, it’s the members whose pressure enables us to reach collective bargaining agreements.”

A Positive Sign for Union Members

Doris Krause-Rattmann, works council chair at Adecco Nord and a member of the collective bargaining committee, also emphasizes the importance of the member bonus. “So far, we haven’t had enough union members to call for warning strikes and thereby secure even better collective bargaining agreements. I hope that the member bonus will change that in the future,” explains Krause-Rattmann. “I also think it’s a positive sign that temporary agency workers will be able to earn their full 30 days of vacation per year sooner in the future.”