On April 1, Germany's IG Metall engineering union stated that the German steel industry has agreed a two percent wage rise in 2010 and a one-off payment of €350 for 2009 in a moderate settlement that follows the sharp downturn in industrial activity.
Accordingly, the agreement will be applied to 85,000 workers in Germany's northwestern region, including the sites of major steelmakers ThyssenKrupp, ArcelorMittal and Salzgitter, starting with immediate effect and running until August 31, 2010.
The pay deal is below the previous year's settlement of a 5.2 percent rise, the biggest hike for 15 years, and also below the union's demand for a rise of 4.5 percent.
Meanwhile, the two parties also reached an agreement whereby the companies would be able to cut the number of hours for workers to 28 hours in order to avoid layoffs. In return, workers would receive pay equivalent to 29.75 hours' work.