Above inflation deal in Germany’s woodworking and plastics industry


IG Metall, Germany’s largest union, has reached agreement with the employers on a pay deal for the around 90,000 people employed in the woodworking and plastics industry, which covers furniture making, as well as workers producing some car parts. 


The deal runs for two years, from 1 January 2016 until 31 December 2017, and provides for two pay increases, 2.0% on 1 May this year and 1.7% on 1 January 2017. 


These increases mean real pay growth as inflation is currently zero (0.0% in February), even taking account of the fact that employees will have to wait to May for the first increase. 


As well as pay rises, the settlement also commits employers to setting aside €300 per employee each year to make it easier for older employees to move to reduced hours without a corresponding loss of pay.


€1 = 78p on 15 March