The wage dispute in the metal and electrical industries is over. There is an agreement on wage increases, IG Metall and the employers’ association Südwestmetall said in the pilot district of Baden-Württemberg after the fifth round of negotiations on Friday.
︎ As a result, a two-stage collective wage increase of 5.2 percent from June 2023 and 3.3 percent from May 2024 was agreed.
︎ Furthermore, a lump sum of 3000 euros is foreseen, divided into two tranches, disbursed in March 2023 and 2024.
To alleviate the current high inflation, the federal government has made a payment of up to 3,000 euros from employers to its employees exempt from taxes and social security contributions.
IG Metall district leader Roman Zitzelberger said after the twelve-hour negotiations: “We fought and negotiated hard, but in the end there is an acceptable compromise on the table. Colleagues are finally getting the permanent percentage increase in pay they want. they have right.
Südwestmetall negotiator Harald Marquardt spoke of what he saw as a “painful compromise” that was only acceptable because the long term gave companies planning security. Also included are relief options for businesses in need.
Roman Zitzelsberger (left), district director of IG Metall Baden-Württemberg and Harald Marquardt, vice president of Südwestmetall, Thursday in Ludwigsburg
Collective bargaining was difficult due to high inflation and the grim economic situation in Germany’s largest industry with around 3.9 million employees. In the summer, IG Metall had asked for an eight percent increase within a twelve-month deadline. He justified it with the loss of purchasing power due to the inflation rate, which is now ten percent. Initially the employers only offered the flat rate of 3000 euros for 30 months.
They would only accept a percentage raise if the union was willing to run it for a long time. The employers described the situation of the companies much more critically than IG Metall. They referred to many smaller companies that were struggling with high energy and raw material costs and shouldn’t be financially overwhelmed. According to the union, however, the majority of companies continue to earn well.
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