Background information

Compared to other sectors, the construction sector was less affected by COVID-19. The sector also profits from the public recovery programme and public investments in infrastructure and building retrofits. In the 2020 collective bargaining round, the construction workers union IG BAU raised demands for a wage increase, for a reimbursement of transport costs to and from a construction site and, additionally, for a COVID-19 premium. The negotiations with the employer organisation failed and the collective bargaining partners had to involve an arbitrator who decided in favour of several union demands. The social partners accepted the arbitrator's decision on 17 September 2020.

Content of measure

On 3 September 2020, the arbitrator decided in favour of travel-to-and-from work reimbursements, wage increases, and a one-time COVID-19 premium. The COVID-19 premia are €500 for workers and €250 for apprentices. No taxes or social security contribution apply to the premia, meaning the workers receive the full amount with no deductions. The wage increase includes a recognition of workers' travel expenses for the journey to and from work. This wage increase alone is equivalent to 0.5% increase of one hourly wage. The total wage increases, from January 2020, vary according to different regions and lie at around 2%.

Use of measure

No data at this point.

Contents

• Bonuses
• Pay increases

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

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

(1) The 2020 collective bargaining round took place, but failed. (2) All social partners accepted an arbitrator decision on 17 September 2020. (3) Employers cover the cost of the premia and wage increases.

Views and reactions

The social partners had to involve an arbitrator who decided in favour of several union demands. All social partners agreed to the arbitrator decision.

Sectors and occupations

This case is not occupation-specific.

Sources

• 17 September 2020: One-time premium for construction workers (igbau.de)