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IG Metall deal widely adopted

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23 May, 2002Four per cent pay rise ended strikes in Baden-Württemberg. This week, other regions have adopted the settlement.

GERMANY: Last week, IG Metall agreed a 4 per cent pay rise with employers, thus ending the union's 10-day strike action for the metal and engineering industry in the key region of Baden-Württemberg. Yesterday and today (May 24), the regions North Rhine-Westphalia, Kueste and Lower Saxony have adopted identical agreements. Under the settlement, the 4 per cent increase will take effect from June this year, followed by a further 3.1 per cent increase from June 1, 2003. A one-off payment of 120 euros (US$109) has also been included, for May 2002. The deal, which goes to December 31, 2003, also includes a scheme in which blue-collar wages and white-collar salaries will be brought together into one wage scale, with only one category of employee (no longer blue-collar and white-collar).