23 February, 2010Agreement in North Rhine-Westphalia, Germany provides for jobs security and wage rises to combat the effects of the financial crisis.
GERMANY: IMF affiliate IG Metall and the employers' federation Gesamtmetall reached a pilot agreement for the metal and electronics/electrical sector in the North Rhine-Westphalia state of Germany on February 18, 2010.
The new collective agreement, called "future in work", includes a joint call on the German government to extend provisions adopted in response to the financial crisis beyond the end of this year for workers already on short-time work. Workers in these plants get a 12 month job guarantee and have the possibility to reduce the normal weekly working time of 35 hours to 28 hours with a partial compensation in terms of wages.
The new agreement saves thousands of jobs in the metal and electronics/electrical sector. In addition there is a joint call from the union and employers' association on the German government to continue subsidising the provisions for job security.
The agreement provides a lump-sum payment for the period of May 2010 to March 2011 of 320 euros per worker (apprentices 120 euros), which will be paid out in two payments on May 1 and December 1, 2010.
A 2.7 per cent wage increase will take effect for April 2011 to March 2012, with Works Councils given the mandate to negotiate that sum within two months prior or two months after that date.
The content of the pilot agreement reached in North Rhine-Westphalia has already been agreed between IG Metall and employers in the region of Baden-Württemberg and it is expected to reach a similar conclusion in other regions.
IG Metall President Berthold Huber termed the job protection provisions of the agreement, "a good result in securing jobs in the biggest economic crisis in 80 years." He added that the government must now do its part to supplement the agreement with extended social insurance benefits.