13 November, 2008Nation-wide strikes are averted as German metalworkers win 4.2 per cent pay rise.
GERMANY: On November 12, after twenty-three hours of negotiations, IG Metall, Germany's largest labour union, and Gesamtmetall, an employers' association representing over 23,000 enterprises, reached agreement for a 4.2 per cent pay rise in the southern state of Baden-Wuerttemberg.
While the agreement currently only applies to workers in Baden-Wuerttemberg, union branches in the rest of Germany are expected to quickly ratify the deal as well. The contract runs for 18 months until April 30, 2010.
Hundreds of thousands of industrial workers across Germany had staged warning strikes since the start of this month in an effort to press home their demands for better pay.
Germany's metalworkers will receive a 2.1 per cent pay rise for the period beginning February 1, 2009 until April 30, 2009 and an additional increase of 2.1 per cent for the period of May 1, 2009 until April 30, 2010. Companies can decide to push back the second 2.1 per cent increase by up to seven months.
Additionally, workers will receive a one-time bonus of 510 € per person for the months November 2008 until January 2009 and a lump-sum payment of 122 € in September 2009.
The agreement will cover 3.6 million workers once all regions ratify the contract.