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Germany – Employers and Industrial union reach wage deal following strikes

06 February 2018

Germany’s biggest industrial union, the IG Metall Union, and employers have agreed to a deal on wages and working hours, following a series of 24-hour walkouts last week.

The IG Metall Union and employers in the key industrial state Baden-Wuerttemberg agreed to a 4.3% wage increase starting in April. The agreement will affect 900,000 workers in key industrial state Baden-Wuerttemberg, which could be extended to the 3.9 million workers in the sector across Germany.

About half a million workers from sectors such as the automotive sector, electrical and electronic good and metal production participated in a series of 24-hour walkouts last week over pay and working hours. The union demanded an 8% annual raise.

The union had also been pushing for staff to have a right to more flexible working conditions revolving around events such as the birth of a child or looking after a relative or ill health, with the right to return to full-time hours afterwards. However, employers rejected the demand that they continue paying full-time salaries to some of those who choose a limited period of reduced working hours.

One of the key aspects of the deal involves the possibility of more flexible working hours. Employees will get the right to reduce their weekly working hours to 28 hours for up to two years, a union demand, while employers will be able to put more workers than before on longer 40-hour weeks. The deal runs through March 2020.

“The collective agreement is a milestone on the way to a modern, self-determined working world," Jörg Hofmann, Chairman of IG Metall, said.