After 16 hours of negotiations, a compromise was reached that will see pay rises for German textile and apparel workers, according to the Confederation of the German Textile and Fashion Industry.
The wage deal calls for an overall 8.1 per cent increase for the roughly 100,000 workers in the sector, with lower income groups getting at least a € 230 (US $ 250) hike. There will also be € 1,500 in tax-free inflation compensation payments.
For this year and the following, there are plans for more considerable salary increases, particularly for apprentices and lower pay groups. The continuation of partial retirement is another important component of the collective bargaining agreement.
The IG Metall union had asked for an 8 per cent pay raise over the course of a year. IG Metall claims that the employers provided a € 1,500 inflation compensation bonus and a two-step 6.5 per cent pay rise over a 26-month period.
Markus Simon, the negotiator’s leader, claimed that given the industry’s struggles with record energy costs and the biggest inflation in decades, the negotiations had been particularly difficult.
Further pressure is being placed on garment producers by the upcoming closure of the German network of Galeria Karstadt Kaufhof department shops and the insolvency of the Peek&Cloppenburg clothing business.
