24 May, 2012IG Metall has built on its wage increase successes by agreeing additional bonuses for agency workers in the metal sector.
GERMANY: On May 22, 2012 IG Metall reached a settlement with temporary work agencies that commits them to paying additional bonuses for temporary workers employed in the metal sector. The agreement, which was made with two temporary agency industry associations, the BAP and IGZ, provides for a series of bonuses linked to length of service. Starting at 15% of salary after six weeks of employment, the bonuses rise to a maximum of 50% of salary after nine months' service. This will give skilled workers between €246-819 additional income per month. The 'sectoral bonuses' are designed to recognize the higher salaries received by direct workers in the metal industry and go a long way towards closing the pay gap between agency workers and direct employees, in line with IG Metall's goal of 'equal pay for equal work'.
Welcoming the agreement, Helga Schwitzer, IG Metall's Executive Director and leader of the negotiations, said "The bargaining parties have made an important contribution to greater fairness in temporary employment agencies." She went on to recommend that other industrial sectors pursue similar agreements.
This agreement builds on the success of earlier agreements struck by IG Metall which oblige employers to negotiate with workers when they want to engage temporary workers and to offer permanent employment to temporary workers after they have been employed for 24 months, at the latest.