A collective agreement for the West German steel industry has been reached after 14 hours of collective bargaining by the Northwest German iron and steel industry. According to this agreement, on 1 January 2024, employees will receive a one-time inflationary compensation payment of 1,500 euros net (trainees will receive 1,000 euros). From February to November, there will be a monthly payment of 150 euros net (80 euros for trainees).
As of 1 January 2025, wages and training compensation will rise by 5.5 percent. This collective agreement will expire on 30 September 2025.
Regarding the issue of working hours, a collective agreement to ensure employment protection during the transformation includes the following points in particular:
- Collective provision: In the event of pressure on continued employment during the course of transformation, the parties may decrease working hours by three hours, based on a regular 35-hour work week. If additional working hours should be required due to transformation – for example, for the parallel operation of old and new technologies or for qualification – working hours can be increased by up to three hours by the parties. In the case of a collective reduction of working hours, there will be a pay scale-based increase in wages by up to one hour’s worth. Hours worked in excess of 35 hours will be compensated according to the already valid provisions on overtime pay.
- Individual provision: The wishes of employees to reduce their individual working hours to 33.6 hours can be met unless business needs dictate otherwise. No wage protection is granted in this context, on principle. However, from 1 January 2025, wages will be protected for employees aged 60 years or older who work in shifts. 34.10 weekly hours will be paid in this case. In 2026 and 2027, the age limit will be reduced by a further year, respectively. In 2027, this provision will be reassessed.
The collective agreements pertaining to partial retirement, employment protection and the introduction of flexitime work records as well as the use of contracts for services were extended.
With regard to the collective agreement, the Chairman of the German Steel Employers’ Association, Reiner Blaschek, says:
“In light of the rapidly deteriorating surrounding conditions of the German steel industry, the agreed-upon increase in wages puts maximum strain on companies’ resources. The disproportionately high inflationary compensation payment for our trainees shows our strong stance as a party to this collective agreement.
We are very pleased that, together with IG Metall, we have managed to draft custom-made regulations concerning working hours and employment protection during the ecological transformation of our industry. The provision pertaining to individual working hours gives employees more flexibility unless business needs dictate otherwise. It was important to us that no wage adjustment be paid as a rule in this case.”
