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07.05.2013 | Boeblingen

German metalworkers win major wage increase

07.05.2013 | Boeblingen

16 May, 2013In Germany workers of the metal and electrical industries, organized by IndustriALL affiliate IG Metall, win 5.6 per cent pay rise for the next 20 month period.

Late at night on 14 May, IG Metall and the Gesamtmetall employers’ association concluded a deal after the fourth round of negotiations in Bavaria, Germany. As of 1 July 2013, workers in the metal and electrical industries will get a hike of 3.4 percent for the next ten months and from 1 May 2014 another 2.2 percent for eight months until the end of 2014.

The negotiations were backed by a number of warning strikes organized by the union in recent days involving as many as 750,000 workers nationwide and about 180,000 metalworkers from Bavaria. Later IG Metall announced that a national strike would be organized if no agreement was reached by Wednesday 15 May.

IG Metall believes that the deal is a real success as the agreed hike will be higher than the inflation rate and the overall economic productivity growth thus resulting in a real wage increase for the workers.

In addition to the wage deal the union negotiated an improved arrangement for apprentices through higher training allowances that will secure the future of the branch. The results acheived in these negotiations have set the benchmark for negotiations in other industries.