German steel sector averts strike

German steel sector averts strike

Germany's steel industry and the country's IG Metall labor union reached an 11th hour wage agreement on Wednesday to avert the sector's first strike since 1978. Some 85'000 western German steelworkers will receive a wage increase of 3.5% as well as a one-off payment of €500 (around $645). The accord came after IG Metall said Tuesday it would ballot its members over possible walk-outs after a fifth round of wage negotiations ended in deadlock. IG Metall actually demanded a wage increase of 6.5% for the 85'000 workers in the west German steel industry, while employers had offered only 2.4%, plus a one-off payment of €800 (around $1'030). The labor union's head negotiator indicated “we are very happy with 3.5% and it is a fair compromise.”