In the collective bargaining round of the metal and electrical industry, employers are now offering a one-off payment of 3,000 euros for their employees.

However, they only want to concede higher monthly wages if the union accepts a long-term collective agreement.

The employers presented this offer on Thursday in several of the regional negotiation rounds with IG Metall.

It is her first suggestion since the collective bargaining round began in mid-September.

The metal and electrical industry with 3.8 million employees includes the automotive industry and mechanical engineering, but also iron foundries and medical technology manufacturers.

Dietrich Creutzburg

Business correspondent in Berlin.

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However, IG Metall, which is demanding 8 percent more monthly wages, reacted negatively and announced the warning strikes that had already been expected: This was "not really an offer at all," said Johann Horn, their district manager in Bavaria, after the negotiations there.

"When the peace obligation expires on Saturday night, we will start warning strikes in Bavaria." His colleague in Baden-Württemberg, Roman Zitzelsberger, said after the negotiations there: "The collective bargaining round cannot be solved in this way.

Now the warning strike phase begins.”

“Friendly discussion atmosphere”

So far, however, there have been no signs of an uncontrolled escalation.

Zitzelsberger and the chief negotiator for the south-west employers, Harald Marquardt, attested to a “friendly atmosphere for discussion” despite all the differences and were already looking ahead to the continuation of their negotiations on November 8th.

At the same time, however, IG Metall made it clear that they continue to focus on a significant increase in current monthly wages.

The President of the Employers' Confederation of Total Metal, Stefan Wolf, emphasized the importance of the one-off payment of EUR 3,000.

"We see the special burdens that our employees are currently exposed to," he assured.

The amount offered helps the employees quickly, especially in the lower wage brackets.

Because of a special rule decided by the traffic light government, the 3,000 euros would be tax and social security-free, so the net amount for the employees would be higher than usual.

According to the proposal, the aim of the employer is a collective agreement with a term of 30 months;

that would be by spring 2025. However, when asked about the demand for higher monthly wages, Wolf explained that the condition for this was economic growth.

However, in view of the recession that is just beginning, this is not to be expected for 2023 – which is in line with forecasts by economic researchers close to the trade unions.

Growth can be expected again in 2024 at the earliest.

With a correspondingly long term, "an increase in the table is also conceivable," added Wolf.

"Table increase" stands for an increase in the collectively agreed monthly wages.

The 8 percent requirement of IG Metall refers to 12 months.

In the public sector, the unions had recently even decided on a wage demand of almost 14 percent.