Background information

The metal and electrical sector faces enormous challenges due to digitalisation, the transformation to emobility and growing global competition; the risk of major job losses became an issue already in 2019. In face of the COVID-19 pandemic, the collective bargaining partners interrupted the ongoing bargaining round and settled an agreement aimed at supporting the companies and workers in getting through the crisis by an extensive use of short time work.

The so-called 'Solidarity collective agreement' was first concluded by the collective bargaining partners in North-Rhine Westfalia and subsequently copied by the partners in all other regions.

It is noteworthy that the collective bargaining partners build on experiences in the economic crisis 2009/2010 when they also cooperated in campaigning against direct dismissals and for short time working.

Content of measure

The agreement settles:

• that annual bonus payment shall be cut in twelve and used for raising the short time working allowance from 60% of the net monthly wage (standard) to 80% of the net monthly wage;
• in case an annual bonus payment is not in place, a solidarity fund shall be established and the employer shall pay €350 per full-time equivalent into this solidarity funds. The funds shall be used for workers facing particular hardships. In case the money is not used up by the end of the year, it shall be distributed to the workers;
• parents with children up to twelve years get five extra days of care leave. Also, they may choose between the annual bonus payment (resp. the extra on the short time allowance) or extra days of leave.

Wage negotiations are postponed until the end of the pandemic.

Use of measure

The short time working scheme was very strongly used in April and May 2020 during and shortly after the first strict COVID-19 lockdown; since spring 2020, the application of the scheme persistently declined in all metal and electrical subsectors. The car manufacturing sector stands out by a stronger use compared to other subsectors.

In April 59.4% of all car manufacturers applied the statutory short time working scheme, by August the share stood at 13.2% and by November at 4.4%. From November to March between 4% to 5.5% of the companies made use of the scheme. (Source: IFO 2021).

Contents

• Employment retention
• Income protection
• Leave arrangements
• Solidarity

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
Social partners jointly	Employer National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Agreed (outcome) incl. social partner initiative	Agreed (outcome) incl. social partner initiative
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Sectoral or branch level

Involvement

The agreement was settled by the social partners.

Views and reactions

Agreement of the metalworkers union IG Metall and the regional affiliate of the employer organisation Gesamtmetall.

Sectors and occupations

This case is not occupation-specific.

Sources

• 27 March 2020: Solidar-Tarifvertrag (www.igmetall-nrw.de)
• 01 June 2021: ifo (2021): Kurzarbeit nach Branchen, Table (online) (www.ifo.de)