Settlement in German banks while engineering talks are deadlocked

The long running pay dispute in the German banking industry has finally been settled with the union HBV agreeing to sign a backdated deal covering 1999 and 2000 which the DAG, the other main union involved, had agreed earlier (see Bargaining Report February 2000). After balloting its members, the HBV decided to back the agreement despite its concerns that new employees would have fewer rights regarding Saturday working than the existing workforce. The agreement provides for two increases of 1.5% this year as well as a lump sum payment of euro204.08.

In terms of the current pay round, the negotiations between the union IG Metall and the engineering employers, which are often a pointer to developments elsewhere, are still deadlocked. The union is calling for an increase of 5.5%. The employers have offered 1.5% a year for three years and are also demanding that the annual extra payment at Christmas should not be fixed but linked to the performance of individual businesses. The union has threatening warning strikes if there is no progress by the end of the month.

The euro was worth 61p as at 14 March 2000.