The collective deal was agreed by IG Metall, and for now only applies to around 900,000 workers in the metals and electrical industries in the south-western state of Baden-Wurttemberg.
Night shift metal workers of the Kirchhoff Automotive (Kirchhoff Witte) company hold flags with the logo of Germany’s metalworkers’ union IG Metall as they stage a warning strike on early January 8, 2018 in Iserlohn, western Germany. GUIDO KIRCHNER/AFP/Getty Images
But the state, home to major companies such as Bosch and Daimler, the makers of Mercedes, is often seen as a weather vane for the German economy and it is likely to be rolled out further.
Last year, the economy grew at its fastest rate since 2011 and unemployment is at its lowest since reunification in 1990, putting workers in a strong position. The deal came after IG Metall called strikes and workers downed tools at firms including Daimler, Siemens and Airbus. But economists say it is also a sign that work-life balance could be as important as pay in future negotiations.
source
Post a Comment