Admin I Tuesday, Nov. 12, 2024
BERLIN – After a marathon round of negotiations between union and business leaders, 3.9 million employees in Germany’s metal and electrical industries are to receive a significant pay rise.
The IG Metal union and employers’ associations said in Hamburg on Tuesday that an agreement has been reached following 18 hours of negotiations to raise wages by 5.1% in two stages.
“This is not a deal for which we will be celebrated,” said union negotiator Daniel Friedrich. However, he emphasized that the deal brings stability for workers in difficult times after a number of strikes.
Stefan Wolf, president of the Gesamtmetal employers’ organization, echoed Friedrich’s comments.
“I’m satisfied, but not euphoric,” said Wolf. “The damage caused by strikes would have been greater.”
Under the new collective bargaining agreement, which is valid until October 2026, employees are to receive a one-off payment of €600 ($637) by February 2025, while apprentices are to earn €140 per month.
Companies struggling amid a challenging period for the German economy have options to suspend or cancel individual payments under the deal, and strikes are off the table. Negotiators on both sides said the agreement represented a model for Germany’s bickering political parties, who on Tuesday finally reached a deal to hold new elections in February.
“We need lower energy prices now, especially for energy-intensive companies,” said IG Metall leader Christiane Bener. “We now need measures to ramp up electric mobility and investments in infrastructure.”
Wolf said the deal was “a signal to politicians to finally get their act together,” calling on Germany’s next government to reduce bureaucracy, loosen labour laws for migrants and implement tax relief for businesses.
