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Collective bargaining: IG Metall wants a salary increase of up to 8%.

From: 20/06/2022 16:41

IG Metall wants to promote salary increases of between seven and eight percent for employees in the metal and electrical industries. The board recommended it to collective bargaining districts, IG Metall Hofmann chief said.

In the round of collective bargaining for employees of the German engineering and electrical industry, IG Metall wants to ask for seven to eight percent more money. The trade union council decided on a corresponding recommendation, as stated by the first president Jörg Hofmann. It is also about maintaining the purchasing power of citizens for private consumption. If private consumption plummets, a recession could threaten.

From the trade union point of view, after the recent Corona agreements, given the good order situation of many companies and the high profits, it is time to permanently increase wages and salaries. However, tariff policy cannot compensate for high inflation and the rapid rise in gas and electricity prices. This requires an additional aid package from the federal government.

New collective agreement for twelve months

In its recommendation, IG Metall bases its recommendation on inflation and productivity development and, given the high profits of big auto groups like BMW and Mercedes, adds a redistribution component. The new collective agreement will have a duration of twelve months.

The recommendation is not yet the final requirement. This will be discussed in the regional wage committees on 30 June. That’s a specific number between seven and eight percent, Hofmann said. The board wants to decide on requesting further discussions in the collective bargaining districts on 11 July.

Peace obligation until the end of October

Contracts for employees in key sectors of German industry, which include vehicle construction and mechanical engineering, expire at the end of September. Hofmann hopes that the negotiations can be concluded in November if all goes well. The peace obligation expires on 28 October. Warning shots are possible after the deadline.

The agreement negotiated with employers in North Rhine-Westphalia last year included a crown bonus of 500 euros and annual “transformation money”. This is expected to be paid in February 2022 in the amount of 18.4% of a monthly salary. From 2023 it will rise to 27.6 percent and can also be used to reduce working hours.

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