IG Metall union in Germany agrees to third consecutive cut in …

The new contract will run for 24 months. During this period, wages will rise by a total of 8.5 percent. In addition, a tax-free “inflation premium” of €3,000 will be paid out in two installments. However, both are being paid so late that inflation will have long since eaten up the increases by the time they come into force. For example, the first pay increase, for 5.2 percent, will not take effect until June 1, 2023, even though the old contract expired at the end of September 2022. IG Metall has therefore agreed to a pay freeze for eight months. The second pay increase, for 3.3 percent, will take effect in May 2024, five months before the contract expires. The two inflation premiums of €1,500 each will also not be paid out until February next year and the year after. For “economic reasons,” these payments can also be postponed for up to six months.