German textiles deal pre-empts strike ballot

At the end of last month German textile and clothing unions agreed a pay deal for the 190,000 employees in the industry the day before they were due to begin a strike ballot.

The agreement provides for a 2.4% increase for 12 months, backdated to 1 September 2000 and a further 2.4% increase for 13 months from 1 September 2001 to 30 September 2002.

In addition the Christmas bonuses are increased by 2.5% in the clothing industry and 3.0% in clothing and arrangements for partial early retirement are improved.

This agreement, both in terms of life-span of around two years and the level of settlement is broadly in line with those signed in other industries earlier in the year (see Bargaining Report 204 and 205 April and May 2000). However, since then inflation has increased from 1.9% in March to 2.5% in September.