German metal union pushes for earlier pay out

IG Metall, the largest German union, is calling on employers to bring forward a 2.7% pay increase agreed as part the deal in the metalworking industry signed earlier this year. The settlement, agreed in February 2010, provided for two lump sum payments totalling €320 this year, and an increase of 2.7% in 2011.

Under the terms of the deal, the 2.7% increase was due to be paid in April, but to take account of the uncertain financial future, it was agreed that it could be either postponed or brought forward by two months, depending on the financial circumstances of individual companies.

Given the improving financial position of German manufacturing — figures from the national statistical office show orders were 13.9% higher in September 2010 than a year earlier — IG Metall is pushing for the increase to be paid in February 2011. Berthold Huber, the union’s president, said: “We expect that the majority of metalworking companies will bring forward the pay increase in the light of the economic recovery.”

IG Metall has already announced that a number of companies, including Bosch, Audi, Ford and the motor transmission manufacturer ZF, have agreed to bring forward the 2.7% increase, and it says other firms should “follow their example”.

Prices in Germany rose by 1.3% in October.