World Socialist Web Site wsws.org 01 Apr, 2021 00:30 am

IG Metall union will have a role in job cuts and wage reductions

IG Metall union will have a role in job cuts and wage reductions
On Tuesday morning in Düsseldorf, the IG Metall union signed a collective agreement covering almost four million workers in the metal and electrical industries, without any percentage increase in wage rates.

The real key, however, is that the “transformation money” will not be paid out at all in most companies since it can be used to finance wage compensation for future reductions in working hours.Companies that the union and the management certify as being in crisis or in transformation can use the money to finance wage compensation for reductions in working hours to as low as 32 hours a week.After last year’s pay freeze approved by IG Metall, there would be no additional burdens on companies this year and no general reduction of working hours, he said.” Reductions in working hours are now certain to follow.

A reduction in working hours is supposed to string out and realise the cuts without “compulsory redundancies.On Tuesday morning in Düsseldorf, the IG Metall union signed a collective bargaining agreement covering almost four million workers in the metal and electrical industries without any increase in wage rates.

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