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IG Metall and the employers in North Rhine-Westphalia agreed on a new collective agreement for the metal and electrical industry after ten hours of negotiations.

The agreement for the around 700,000 employees in North Rhine-Westphalia, which is to have a pilot character for the entire industry, includes, among other things, a corona bonus of 500 euros until the end of June and a percentage wage increase in the form of newly created transformation money, said Knut Giesler, IG Metal district manager NRW and negotiator early Tuesday morning.

According to the collective agreement, wages and training allowances will increase by 2.3 percent from July.

This increase will initially be saved for 8 months and then paid out to employees in February 2022 in the form of 18.4 percent as a sum.

This is the entry into an annually recurring payment, which from February 2023 corresponds to 27.6 percent of a monthly gross income.

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In conjunction with other tariff elements, this “transformation allowance” can be used to reduce working hours to a four-day week without this having any significant impact on gross monthly wages.

IG Metall had demanded four percent more money for the German industry with the largest number of employees over a period of one year and has underlined this with a wave of warning strikes in recent weeks.

The volume should either be used for higher wages or for partial wage compensation with reduced working hours, which could secure jobs in the corona crisis.

The metal employers had repeatedly emphasized that there was little scope for wage increases due to the Corona crisis.

They also called for the introduction of an automatic tariff relief mechanism for companies particularly affected by the crisis.

The main thing is to secure jobs.