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Germany – More sectors introduce equal pay for agency workers

06 November 2012

Equal pay agreements in the staffing industry are taking off in Germany after major sectors have already introduced higher pay rates this month, the textile and clothing industry as well as the wood and plastics sectors now follow suit.

This week employers and unions have agreed to raise wages for agency workers through gradual instalments.

Negotiators for the staffing industry said they went to their “limits” in achieving these equal pay agreements. Many recruitment companies fear a slowdown in business activities after market leaders such as ManpowerGroup and Randstad last week expressed their concern over higher surcharges implemented in the metal/electrical industry on 1 November. 

The new collective agreements are valid from 1 April 2013, running to the end of December 2017. Employers say this will make the staffing industry more attractive to skilled workers although higher labour costs are inevitable.

Temporary employees in the clothing/textile industry will see their first surcharge of 5% come into effect six weeks after employment. Those in the woods/and plastics sector will receive a +7% surcharge after the same period.

Temporary staff will see the highest surcharge after nine months of employment although the increase varies by sector with workers in the textile business earning less with a +25% surcharge, compared to a 31% surcharge for wood/plastics workers.   

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