The wage agreement provides for an overall 8.1% increase for the industry’s approximately 100,000 workers, with lower wage groups to receive a raise of at least €230 ($250). In addition, there will be tax-free inflation compensation payments of €1,500.
Further significant income increases are planned for this and next year, especially for lower wage groups and apprentices. Another core element of the collective agreement is the continuation of partial retirement.
The IG Metall union had demanded an 8% wage increase for a twelve-month period. According to IG Metall, the employers had offered a €1,500 inflation compensation bonus and a two-step wage increase of 6.5% per cent for a period of 26 months.
Markus Simon, who led the negotiations, said they had been particularly challenging as the industry was grappling with record energy costs and the highest inflation in decades.
The planned closure of Germany’s chain of Galeria Karstadt Kaufhof department stores and the insolvency of the Peek&Cloppenburg fashion chain are putting additional pressure on clothing manufacturers.
Courtesy of dpa