MarketCollective bargaining in the metal and electrical industry

Collective bargaining in the metal and electrical industry

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There is consensus in the wage dispute in the metals and electricity sectors. Among other things, wage increases of 5.2 percent are planned through June 2023.


The wage dispute in the metal and electricity sector has been resolved. IG Metall and employers’ association Südwestmetall said that after Friday’s fifth round of negotiations, an agreement was reached on wage increases in the pilot region of Baden-Württemberg.

Here’s how recent negotiations in the metal industry went:

Pay increases and tax-free one-time payments planned

Pay increases of 5.2 percent through June 2023 and 3.3 percent from May 2024 are planned over a 24-month period, as both parties announced in Ludwigsburg early Friday morning. There are also tax-free one-time payments totaling 3,000 Euros. The result is considered a pilot project, the core of which should be implemented in other districts as well. Approximately 3.9 million people are employed in the sector throughout the country.

After twelve hours of negotiations, IG Metall regional leader Roman Zitzelsberger said:

We struggled a lot and negotiated a lot, but in the end, an acceptable compromise is on the table. Colleagues are finally getting the permanent pay raise they deserve.

Roman Zitzelsberger, IG Metall

Südwestmetall negotiator Harald Marquardt spoke of a “painful compromise” in his view, which is acceptable only because it provides security to long-term planning companies. There are also help options for companies in need.

The result counts as a pilot’s degree

IG Metall began talks in mid-September, its highest demand since 2008: eight percent more money with a one-year maturity. Employers had offered 3,000 euros for a one-off during the collective bargaining. They also promised an indefinite increase in their payroll over a 30-month period.

After four rounds of unsuccessful negotiations, eyes are on Baden-Württemberg for the fifth round on Thursday. IG Metall has given the green light to a pilot contract in the region, which has been a pioneer of collective bargaining in the past. According to the union, both sides had already resolved a number of detailed questions. Even before the tour in Ludwigsburg, the tax exemption of 3,000 euros seemed indisputable. However, the duration and amount of possible wage increases were still clear.

Collective bargaining under the impression of inflation

According to IG Metall, around 900,000 people across Germany had participated in warning strikes until Thursday. On Thursday alone, 100,000 people stopped working temporarily, half of them in Baden-Württemberg. Should the negotiations in Ludwigsburg fail, IG Metall had already introduced 24-hour warning strikes and ballots, followed by widespread strikes in individual districts.

Collective bargaining this year has been affected by the dramatic increase in prices. While the union has repeatedly backed its claim with the high burden of inflation on workers, employers pointed out that many companies were already in bad shape.

Source: ZDF

Ben
Ben
I am Ben Stock, a highly experienced professional with over 7 years of experience in the news industry. I specialize in market section writing and have published numerous high-quality articles on various topics under my name. My passion for journalism has helped me to develop an in-depth understanding of the industry, enabling me to stay up-to-date on all the latest trends and developments.

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