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German IG BCE Secures 2.7% Increase for 25,000 Energy Workers

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5 December, 2011

IG BCE together with Verdi, the service sector union of Germany, reached agreement in bargaining with German energy group RWE on 29 November on a 13 month deal for the company’s 25,000 employees in Germany. The new deal provides a 2.7% salary increase from 1 December 2011, and sets out new talks on improving job security and trainee prospects.

European utility provider RWE is the second largest energy producer in Germany. The issue of fair salaries at RWE has caused widespread discontent through the workforce in recent times. In January the ICEM reported on warning strikes of IG BCE members at RWE who were close to full strike action. (See the ICEM report here) More strikes were averted in January by a company offer of 3.4% salary improvement. Unions again threatened warning strikes in mid-November in the run up to settlement. This latest deal will see the union negotiating committee push for continued and better salary improvements in the collective agreement for 2013.

A key achievement in this settlement was the binding agreement to open discussions in the second quarter of 2012 on the renewal of the Job Security Agreement, due to expire end of 2012, to safeguard jobs in the group.

The union bargaining committee recommended the deal for adoption by the joint tariff committee.